Catastrophe bonds are issued by reinsurance companies as a way to hedge some of their own risk from devastating hurricanes, fires, floods and earthquakes.
Holidaymakers remain an important part of the local economy, but so too does the insurance and reinsurance business.
And it would make reinsurance—and thus, insurance—much more expensive for almost everyone.
To begin with, almost all insurers buy insurance of their own, reinsurance, to deal with the biggest risks they face.
While devastating, Sandy is not likely to cripple the insurance or reinsurance industries with massive payouts.
Two weeks ago, Munich RE, the German reinsurance giant, released a prescient report.
Reinsurance contracts are abrogated unless invasion has made it impossible for the reinsured to find another reinsurer.
Reinsurance treaties are abrogated unless invasion has made it impossible for the reinsured to find another reinsurer.
The aggregate of these sums makes up the "reserve" or reinsurance fund.
He starved himself in order to save money to speculate in shipping reinsurance.
In this connection it was that he gave me the first hints concerning the secret reinsurance treaty with Russia.