Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Environment & Energy

TexasTowelie

(127,172 posts)

2. Natural disasters are huge risks for small regional insurance companies

Reply to hatrack (Original post)

Tue Dec 4, 2018, 09:24 AM

Dec 2018

and why they rarely receive "A" ratings from A.M. Best. While the reinsurance policies allowed the company the leeway to underwrite more policies, the overall ratio of exposure to capital and the quick action to declare an insolvency are signs that the company was already under scrutiny by the California Department of Insurance prior to the wildfire.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

5 replies

= new reply since forum marked as read

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