The insurance industry may not be as attractive as high -tech, investment banks, advertising, and Hollywood. After all, consider that the title of the most influential publications is the title of what is happening in real estate insurance. IBNR Weekly (IBNR means that the insurance limit for long -term bulk capital reserves has occurred, but it has not been reported.) Therefore, you will not be ashamed of the title “Loss of California’s Mountain Fire, Internet or Gloss”. The purpose of this memo is to peel off the onion layer and betray the insurer’s message on the health of the insurance industry.
There is a wealth of noise that declare that the California insurance market is being threatened or collapsed. Venerable New York Times “Possibility of collapse of the US house’s insurance system” was held. Insurance business America Did the work an implied title “The end of every day?” Is the insurance industry trying to collapse? “and Senate Banking Committee He recently held a hearing, and wrote a report that “the next autumn: climate -led insurance climate is here and it is getting worse.” Unfortunately, the general public’s awareness of the health of the insurance industry is often formed by such a declaration of alert sentence. In reality, the financial state of the insurance industry is formed by the following factors:
- Possibility of re -insurance collection
- An insurance company’s retention level
- Sessions to partner and non -related reinforcements
- Recovery of re -insurance
- How many events?
- Internet vs gloss
Jumping into the six drivers mentioned above in the health of the insurance company New York Times The best -selling romance novel is a factor that analysts and regulatory authorities use to determine whether the insurance industry and individual insurance companies, especially California’s insurance companies, are standing or collapsed.
Possibility of re -insurance collection
Insurance companies practice risk management to protect balance sheets. They protect their balance sheet by calculating the upper limit of the amount that can be paid reasonably with losses before the capital foundation is seriously affected. They determine the most possible maximum loss (PML) based on past losses and expected losses. More than that, they relieve the risk to the reward company, and even if the actual loss is higher than the PML, the largest loss (MPL) is calculated. It takes into account the worst situation that may happen. If the main insurance industry is an economic financial first respondent, the reward industry is an insurance company shock absorber.
The re -insurance industry is global. Half Industry The $ 500 billion capital is maintained by the Big for Munich RE, Swiss RE, Hannover RE, and Score RE in the continental European. Most of the rest are retained by Bermuda’s reinforcements, spread to dozens of Lloyd syndicate, US reinforcement companies (especially Berkshirehasaway national compensation companies), and the Far East (Japan, South Korea, China). I am. The main insurance companies are spreading their risk globally. In exchange for re -insurance companies, the insurance company will cancel the risk to the re -insurance company or give it out. Large -scale insurance companies such as farmers are literally expanding their risks to 128 re -insurance companies around the world. This achieves risk and diversification. Rest insurance companies also practice risk management so that primary insurance companies only acquire only a small part of the risks assigned to them.
There is also a re -insurance company re -insurance. This is known as a retrocloscacy re -insurance that risks Retrocessionaire risks of Retrocedent and Cedes. Retrocessionairs includes some syndicate, such as de Shaw and Lloyd.
Since many of the risks of insurance companies are transferred to re -insurance companies and re -insurance companies, the protection wall of the insurance company’s balance sheet is enhanced. Therefore, when you hear that California’s mountain fire can reach a loss of $ 28 billion, the reality is that many of them are paid by the re -insurance industry. $ 28 billion is the total. The amount paid by the insurance company is pure amount after recovering the loss amount paid by the re -insurance company.
In addition to the protection of insurance companies by re -insurance companies called “traditional” re -insurance companies, there are also capital provided by “alternative” re -insurance providers in the form of securities related to insurance. A catastrophe or cat bond. CAT bonds are funded by third -party investors who consider the risks of catastrophe as diversified play, as the occurrence of the catastrophe is unrelated to the capital market.
Establishment and return of insurance companies
The amount that the insurance company has established as the most paid before the re -insurance starts is “attachment point”. Rest insurance payments are caused when a loss is hole in the insurance company’s attached file point. If the loss is sufficiently large, the insurance company will be blown away through its maintenance, and the risk will be paid by the panel reinforcement company (a list of re -insurance counter parties). If the loss is large enough to exceed the limit of reward, there may be recovery. This is like reloading a pistol. The main insurance company will receive the second support for re -insurance compensation in exchange for the insurance company pays the insurance premiums of the covered cover.
Related or non -relevant re -insurance company
The large -scale national insurance group is operated in complex pooling arrangements. For example, the middle century insurance company is within the Farmers Group. Nearly half of the business, 44.5 % of the business is the risk of California, and 50 % is the owner of the housing. This has earned $ 2.5 billion in Farmers Insurance Exchange, a pool between the Company. In addition, more than 100 non -related re -insurance companies, including Europe, Bermuda, London, and US insurance companies
One or two events
There was a considerable lawsuit on whether the two -tower was destroyed by the 9/11 terrorist attack at the World Trade Center. event Or two events. This was important because insurance restrictions could apply “outbreak” or “total”. Similarly, there may be arguments on whether California’s mountain fire is one event or multiple events. This is an important distinction. For example, General Mercury Castructured re -insurance Treaty A combination of a loss event that occurs within a radius of 150 miles can be treated as a single occurrence.
Analyst California’s mountain fire is on the view that the re -insurance company will not stop the results this year. This is due to the highest point of the attached file attached file than a few years before the camp caused a major loss. Except for the very few insurance companies that focus on California, the largest insurance company in California’s housing owner insurance is a large -scale citizen. Certainly, unlike Florida, 9 out of the top 10 housing owners in California -State farms, farmers, CSAA, Liberty Mutual, All State, Auto Club, Auto Club. The traveler and American family are jumboonators, which is the benefits of relevant company pooling agreements and dozens of non -relevant re -insurance counter parties.
If this all sounds complicated, that’s right. But passing a complex market is important to avoid having to paraphrase the mark. ToeinFixed a newspaper that published a writer’s death article when he was still exaggerated, saying, “My death is very exaggerated.”
topic
Catastrophe
Natural disaster
California
Loss of profit
Wildfire
