Reinsurance

“The way I characterize it is if you underwrite a risk that has a one in 10 chance of happening, historically that would get priced that you get paid 15 or 20% to take that risk. That number's over 50%. So the pricing around a unit of risk in Florida wind now i…”

“One of the fundamental differences between disaster insurance and insurance for other risks is that these are risks that are correlated, right? And so imagine being an insurer who's writing insurance policies for everyone who lives in a given city. If you're c…”

“We think about insurers trying to protect their solvency, and one way that they can do that is that they can hold a bunch of surplus capital within the firm, but that's an expensive thing to do, to, you know, basically put capital in low-risk investments to be…”

“One question that you might ask if you're an insurance company is, well, reinsurance is expensive and difficult to buy. Why should I care if I, as a company can't pay my claims in a given year, then I'm going to go bankrupt and that's terrible for my policyhol…”

“If you look at people that study reinsurance, they're, the persistent fact is there's not a lot of capital entering these markets”

“The cost of reinsurance in California has at least doubled, maybe tripled over the last five or 10 years.”

“And now all the capital's leaving, it's probably a good time to come back into the space.”

“In the case of reinsurance, the losses can be equity like, and they're different and people don't, they're not as familiar with that. They're less likely to hold on.”