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Hunterrose242 t1_j20yhn9 wrote

> Reinsurers, who insure the insurers

We need to go deeper.

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PainfullyEnglish t1_j21c9ps wrote

Who insures the Reinsurers?

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52ndstreet t1_j21kuuo wrote

The article tells you: they’re called “retrocession”

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blackn1ght t1_j21qfy3 wrote

I'm sure I read once that the Apollo programme (or the Saturn rocket itself, I can't remember now) used several insurance companies, who themselves also had to be backed up by several insurance companies, who in turn also had several insurance companies.

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Greedy-Knowledge6043 t1_j22g3cl wrote

I know plenty on the matter. What do you want to know?

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Hunterrose242 t1_j23p6np wrote

I appreciate the offer but I was just chuckling at the fact that insurers have insurers.

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Greedy-Knowledge6043 t1_j23undf wrote

It’s a funny concept to wrap your head around!

But for example, think of an area that’s quite for one to natural disasters. Florida, the pending earthquake in California, the Caribbean, Japan’s regular earthquake, tornado alley.

When those natural events occur and wipe out sometimes an entire nation, insurance companies often do not have cash on hand to payout every one of their policies. That’s where reinsurance steps in.

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sanjsrik t1_j1ztlsz wrote

Aren't they already excused because of the "act of war" clause?

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red286 t1_j2096rc wrote

No, international ship insurance covers unanticipated acts of war and/or piracy. The problem is that when you've got a full-blown war with attacks on shipping in a specific area, the amount of losses exceeds what insurers can tolerate, so they'll either cancel coverage in that specific region, or significantly increase fees for coverage in that region.

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MandoAviator t1_j20ksit wrote

War surcharge will go up to a few hundreds.

Nothing will change

The lines servicing that area will make beaucoup bucks

Source: was in shipping servicing Syria when all hell broke loose. Went from great money to mad money.

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comped t1_j21wvmh wrote

So, it's essentially like flood insurance if you live in a floodplain then?

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ActivisionBlizzard t1_j232lnj wrote

This is how all insurance works. Health insurance for a smoker will be higher for example.

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westbamm t1_j1zw8pb wrote

It is not a war, it is a special operation. /s

But I thought the same.

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MinuteManufacturer t1_j20grhn wrote

> American P&I said on Dec. 23 that it had received a "notice of cancellation" for the region from its war risk reinsurers and was cancelling its own insurance as a result.

>Ships typically have P&I insurance, which covers third-party liability claims including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage.

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renato4803 t1_j1ztfxd wrote

I wonder if this will affect Russian private insurers who cover Russian private business and leisure travel to foreign destinations.

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Pitiful_Amount8559 t1_j22csu7 wrote

People are burning their own properties in Russia to collect insurance because the economy is sucking. Will get worse. Would you insure anything there?

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EasternMotors t1_j24d1sh wrote

Great news. Russia moving from 2nd world to 3rd shortly.

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