Catastrophe reinsurance set to soar after year of extreme weather

Lloyd’s of London underwriter Beazley, which raised fresh capital this month to take advantage of the firmer market, forecast property reinsurance could be 50 per cent more expensive next year.
Catastrophe reinsurance set to soar after year of extreme weather, industry warns | Financial Times

1 Like

One of the comments at the bottom of the article is really spot on:
“It is now when daddy Buffett sweeps in. When the fortress enjoys once again the high priced. When prices are low, insurers prefer the cheaper options and scoff at Berkshire. This leads to the cycle I described, which always ends with the cheaper options bankrupting themselves or scaling back operations. Which leads to less supply, and higher prices. Which leads to Berkshire being in the game again and further compounding wealth.
Greed vs temperance. Short term vs long term. Amateur analysts and bonus incentives vs legends.
Ajit Jain sends his regards”.

11 Likes