reinsurance

“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…”

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

“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…”