« Pity my dentist | Main | Thank-you note »

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

silly things

"healthy customers" are analogous to residents with homes in areas that are not hurricane-prone; do we think they are carrying hurricane insurance?

The above is not an issue for a good disaster insurance co for 2 reasons.

1. disaster insurance companies operates over both space and time (not just space).

2. disaster insurance insures against different uncorrelated disasters. Places without hurricane may have earthquake.

Kaiser

ST: Good comment. The problem for a hurricane insurer is to find customers who won't need payouts when a hurricane hits, otherwise it will go bust every time. This spatial concentration is unique to the hurricane (natural disaster) insurance business.
Insurers do not put premiums collected from hurricane policies in the same risk pool as those collected from earthquake policies. In fact, some even ring off Florida policies into its own risk pool precisely because other states that are not as exposed to hurricanes do not want to be in the same pool as Florida.
The book discusses all this in greater detail. The point is that in reality, you can only put people into the same risk pool if they feel like they are "fairly treated".
There is something called reinsurance that pools together policies from uncorrelated disasters. I think those structures are a disaster waiting to happen. Will write more about that in the future.

Insurance Claim Help Florida

The next major hurricane to hit Florida should answer all your questions.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Marketing and advertising analytics expert. Author and Speaker. Currently at Vimeo and NYU. See my full bio.

Next Events

Aug: 20 DataViz New York Meetup

Aug: 26 Optimizely Experience, Invited Expert, New York

Past Events

See here

Junk Charts Blog



Link to junkcharts

Graphics design by Amanda Lee

Search3

  • only in Big Data

Community