On Jan 24, 5:31 pm, "[email protected]" <[email protected]>
wrote:
> > The insurance industry has most to lose if they are not!
>
> Insurance companies make money by scaring their customers and
> competitors. What matters is not whether there are few or many
> hurricanes. What matters is that the customers and competitors are
> scared into believing damage will be high, so that customers will pay
> high insurance premiums and competitors will shy away from
> undercutting you. Then, as it turns out that the actual damage is low,
> you make tons of money.
If it's that easy then I had better buy some insurance shares :-)
However, we live in a competitive society, and insurance is priced at
the lowest level that will produce a profit. There are plenty of
people out there willing to sell cheaper insurance provided they can
make a profit.
The problem for them is that if there is a big disaster they may not
have the funds to pay out. So they need to know the real risks. It is
a matter of life and death for their companies.
They are not into political posturing.
Cheers, Alastair.
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