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by DazWilkin
502 days ago
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Insurers buy insurance (reinsurance) in an attempt to offload excess risk. In your follow-up example, they could reinsure much of the $200B so that they're only liable for a small(er) part of the losses. The calculation is thus whether they can pay the premiums on the excess (and accept reinsurers' contractual terms) and still make money. |
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