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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (847)	9/18/2001 7:09:27 PM
From: patron_anejo_por_favor	Respond to of 306849

<<The conventional wisdom on Wall Street is that insurance companies not only experience increased demand for their products after such disasters, but they also get to charge more for insurance, raising their profits.>> Agree. It is paradoxical, but is clearly supported by years of claims and pricing experience. The typical example for a Prop & Casualty insurer is increased demand for coverage after earthquakes or hurricanes. That's why selling in the insurers was a bit anomalous after WTC (OTOH, there is a significant difference in that the latter disaster was manmade, and that there is some evidence that the perpetrators or their backers may have had financial gain from shorting reinsurers as a secondary motive).