• Placebonickname@lemmy.world
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    23 hours ago

    (Gasp) What happens when an insurance company is forced to repair everyone’s damaged property and the bug businesses that fund them go bankrupt? Will the country feel it then? Won’t someone think of the big businesses!

    • yetAnotherUser@discuss.tchncs.de
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      21 hours ago

      Insurance companies rarely go bankrupt as it requires insane incompetency to achieve this.

      Insurance companies work like casinos: Develop a probabilistic model to determine the average amount of claims per customer per region and then charge more.

      That’s why they are exiting regions where the expected yearly damages exceed what they are allowed to charge. Insurances are the first to exit a sinking ship.