Baltimore disaster may be the largest-ever marine insurance payout | Hacker News Reader

Baltimore disaster may be the largest-ever marine insurance payout

cnbc.com

18 pointsarcza11 comments

The good news for Lloyds is that the US federal government intends to pay for the bridge rebuild.

https://www.nbcnews.com/politics/white-house/biden-says-want...

That doesn't mean there will not be massive insurance claims. It just means that the US government will foot the bill for fast replacement and will still pursue as much compensation as possible in the long run.

This is what I figured when I read the parent's comment, but I can't find anyone substantiating that claim, just that Biden assumes congress will be on board with the idea. Do you have a source?

https://www.reuters.com/world/us/biden-says-federal-governme...

>“Despite the hefty insured losses, we expect they will remain manageable for the insurance industry as they will involve a large and diversified pool of well capitalized insurers and reinsurers,” Morningstar said.

Is the insurance business world so scummy that just a couple of billions worth of claims could even remotely be a problem for them?

According to the article, no.

remain manageable != not a problem

Moreover, regardless of how large the sum is, when they took the policy they should have known if they could pay it? I'd have thought there's regulations on that.

Insurers will also have insurance themselves to cover extremely large claims

Yep...reinsurance is a common practice in the industry

Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event.

https://en.wikipedia.org/wiki/Reinsurance

What makes you think this is not the case? According to the article this disaster was within the parameters the the insurers planned for, even though it is the biggest of its kind.

> Is the insurance business world so scummy that just a couple of billions worth of claims could even remotely be a problem for them?

Welcome to socialism… err… “capitalism”. Privatize profits, socialize losses.

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