Managing Risk - The Role Of Reinsurance

January 21st, 2015
in econ_news

from the Chicago Fed

By tempering financial losses, the insurance industry lends resilience to the economy and helps homeowners and businesses recover from natural disasters and other catastrophes. In order to do this, however, the insurance industry must itself be resilient.

Follow up:

In 2005, U.S. property and casualty (P&C) insurance companies paid out a record $72.2 billion in natural disaster- and catastrophe-related claims, more than double the claims paid in 2004, yet very few insurers faced insolvency as a result.

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