All I can say is financial reinsurance that is just smoke and mirrors is just smoke and mirrors. More small insurers should take advice from someone other than their reinsurers when evaluating financial reinsurance in terms of its financial, regulatory and capital implications. Financial reinsurance doesn’t typically cause financial problems but it can gloss over and hide genuine problems.
Figuring out the future and the now
About David Kirk
Featured Posts
- The “Indemnity Trap”: Why Outdated Legal Models are Deferring the Promise of Parametric Insurance
Parametric insurance is often marketed as the “clean” alternative to traditional risk transfer. The pitch is compelling: if a hurricane hits a specific GPS coordinate… Read more: The “Indemnity Trap”: Why Outdated Legal Models are Deferring the Promise of Parametric Insurance - The Complexities of Comparing SCR Cover Ratios Across Insurers
In the insurance industry, we often use Solvency Capital Requirement (SCR) cover ratios as a key metric for comparing insurers’ financial strength. While these ratios… Read more: The Complexities of Comparing SCR Cover Ratios Across Insurers - One answer could be pet insurance
I firmly believe major demographics shifts are going to have massive social, political, economic, financial market and commercial impacts in the coming decades. The balance… Read more: One answer could be pet insurance - A piece of the failure puzzle – decreasing insurer failure rates through Skilled Person Reviews
Every failure hits policyholders’ savings or cover, impact their lives and their livelihoods. They destroys shareholder value and decrease confidence in the entire financial sector.… Read more: A piece of the failure puzzle – decreasing insurer failure rates through Skilled Person Reviews - How and why insurers fail
I’ve been updating my presentation from 2021 on “How and Why Insurers Fail”. I now estimate the annual failure rate (or at least getting into… Read more: How and why insurers fail - The hidden dangers of opinion shopping and trusting good news.
I had a recent discussion on the value of getting a second opinion. There’s the old line that “if you want five opinions, ask three… Read more: The hidden dangers of opinion shopping and trusting good news. - 40,000
40,000. That’s the ballpark figure I usually work with as the minimum number of micro insurance policies required for scale. The expenses of running even… Read more: 40,000
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