General insurance Facts about catastrophe reinsurance

Phabbyfundz

Active member
Reinsurance for catastrophic losses. The insurance industry is able to absorb the multi billion dollar losses caused by natural and man made disasters such as hurricanes, earthquakes and terrorist attacks because loss are spread among thousands of companies including catastrophe reinsurers who operate on a global basis.
Insurers ability and willingness to sell insurance fluctuates with the availability and cost of catastrophe reinsurance. After major disasters such as hurricane, Andrew and the world trade center terrorist attacks, the availability of catastrophe reinsurance becomes extremely limited. Claims deplete reinsurers capital and as a result companies are more selective in the type and amount of risks they assume. In addition, with available supply limited, price for reinsurance rise. This contributes to an overall increase in price for property insurance.
 

btaliat

VIP Contributor
Judging on the amount the insurance companies loses on this kind of insurance policy, there is no way no one will not judge right that insurance company will by no way run into loses. There are cases of natural phenomenon which have caused a lot of damages especially in the western world.
 

Mandy96

Valued Contributor
I have never heard about this before. I mean what does it even tend to translate but I sure know that this could hold an important space in insurance policy. It’s surely one of the things people should know and take very seriously before considering to purchase any plan in order to avoid any future issue
 
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