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Environment & Energy

lapfog_1

(31,876 posts)

1. As a small insurance company

Reply to hatrack (Original post)

Tue Dec 4, 2018, 09:13 AM

Dec 2018

diversification of risk is paramount.

They should have sold off (to re-insurers) some 90% of the risk they undertook in the single area.

But I'm sure they realize all of this... now.

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Highlight:

Judge Rules CA Insurer Insolvent Because Of Camp Fire; $64M In Paradise Liabilities, $23M In Assets [View all] hatrack Dec 2018 OP

As a small insurance company lapfog_1 Dec 2018 #1

The fact that they had the reinsurance contracts and transferred some of the risks TexasTowelie Dec 2018 #3

Per the article, the guaranty cuts off at $500k . . . hatrack Dec 2018 #4

Thanks, I didn't read that far in the link so I didn't know the California guaranty fund limits. TexasTowelie Dec 2018 #5

Natural disasters are huge risks for small regional insurance companies TexasTowelie Dec 2018 #2