Quote:
Originally Posted by John Mercier
Insurance companies don't care what we call it, or what causes it. They use actuarial tables that get adjusted so that in the end the company stays profitable. An extreme event to them may just be based on a certain figure of dollars rather than any other measurement; or it may be the size of the claim area.
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John, I think you and I agree. One of the posts said that insurance companies are increasing or canceling insurance because of extreme weather. My point is that it is all about the math, including the density of insureds where are properties exposed to things like hurricanes and floods, the values of the insured properties, and the replacement costs. Much like life insurance, it is based on probability and statistics, and the statistics show a decrease in events, but huge increases in the densities, the values and replacement costs.