It’s “on the rise” — so let us over-insure you?
Insurers know that bad weather comes and goes… and after it comes, it’s not likely to come again for a long time… that’s why they’re called “100-year” storms.
It’s “on the rise” — so let us over-insure you?
Insurers know that bad weather comes and goes… and after it comes, it’s not likely to come again for a long time… that’s why they’re called “100-year” storms.
And I suppose all these profits are unregulated and un-taxed – or not taxed as high as they should be? Oops – have I trodden on someone’s foot?
According to Roger Pielke Jnr, the insurance industry quickly makes good any losses as premiums rise, and people over-insure. A long period without any extreme disasters is probably more harmful to industry profits than lots of disasters. But panic about a non-problem, or a trivial issue is even more profitable. The insurance companies only cost is advertising needed to generate the panic.