The Oil Drum | DrumBeat: August 25, 2006

274 comments on DrumBeat: August 25, 2006

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TrueKaiser on August 25, 2006 - 1:19pm

i am not surprised. it was probably either shred them or go bankrupt.

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tate423 on August 25, 2006 - 1:43pm

Bankrupt em in court. We need a flippin reset button.

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neon9 on August 25, 2006 - 2:31pm

Aren't they making record profits though?

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tate423 on August 25, 2006 - 2:34pm

Not sure, I know they are MIGHTY healthy in face of the hurricanes and this would explain why. I bet the aggregate numbers would astonish all of us. I think they are paying less than 25% of their claims.

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TrueKaiser on August 25, 2006 - 3:47pm

insurance company's run basically like a casino.
they are placing there bets that the monthly fee's from the insured will vastly outnumber the amount of claims they do have to pay out when stuff happens.
the big sign post that tells people that they actually lost the bet with Katrina is that they are trying to find ways no matter how minor to deny people their insurance payouts.

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Substrate on August 25, 2006 - 10:24pm

They don't just rely on fees...they actually invest the fee money as well.

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TrueKaiser on August 25, 2006 - 11:01pm

still their entire model is based on betting their income will always be bigger then what they have to pay out.
the damage done by Katrina would do any one insurance company in so they are franticly trying to minimize their lost income by shredding and denying claims.

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274 comments on DrumBeat: August 25, 2006

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