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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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