Insurers are taking on more risk than they should. If – or when – a major disaster hits, the catastrophe will have far-reaching consequences, says an anonymous modeller and whistleblower
He’s talking about reinsurance. Front-line insurance companies that you typically deal with directly are (sometimes? often?) “reinsured” by other insurance companies backing their risks. It’s turtles all the way down.
Ultimately it’s all Lloyds of London. They insure pretty much every insurance company.
Loyd’s runs an insurance brokerage or market, they don’t actually underwrite the policies themselves.
He’s talking about reinsurance. Front-line insurance companies that you typically deal with directly are (sometimes? often?) “reinsured” by other insurance companies backing their risks. It’s turtles all the way down.
They also insure the insurance companies themselves. Insurance companies have to get payout insurance, for if they have to do a big payout.