Expensive, one way or the other… Interesting how Reuters is slanting the ‘message’…
FRANKFURT/MUNICH, Jan 9 (Reuters) – Hurricane Ian in the United States and floods and Australia helped to make 2022 one of the costliest years on record for natural disasters, Munich Re said on Tuesday, warning that climate change was making storms more intense and frequent.
Full article, HERE from Reuters.
But, a bit more, shall we say, even handed coverage from Town Hall.
According to Reuters, Munich Re is complaining bitterly, along with several other pre-imminent international re-insurers. about its massive weather-related losses during the calendar years 2021 and 2022.
The role of re-insurers in the insurance market is simply to back-up the many standard casualty insurance companies, that may wish to deal off part of the potential liability from catastrophic losses (mega-claims) filed by their policy holders, who may sustain economic damage from one of a variety of natural occurrences.
Full article, HERE.
The expensive part is when the re-insurers back out of markets, making it impossible for the majors like State Farm, Allstate, Farmers, et al to spread the potential loss. It basically leaves the insurer in a no win situation, to the point that they will probably drop ALL coverage in that state/geographic location.
The states are also caught in a Catch-22, in that they can only raise rates so high, either through legal means, or try to take out more insurance themselves (good luck with that).
When that happens, people are forced to go without insurance, or try to find ‘somebody’ that will sell them a policy at who knows how much per month…
For the rich that live in places like Amelia Island, Kiawah, or any of the other waterfront areas up and down the coasts, they’ll pay it. The problem is the service people that live close to there, that feed the rich, run the businesses that service them, and the restaurants, etc. that populate the ‘cheap’ side of the island. They won’t be able to protect their assets.
Bottom line, it’s a no win for the little people… again… sigh