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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: axial who wrote (11778)	11/28/2001 3:46:02 AM
From: Raymond Duray	Read Replies (1) \| Respond to of 281500

Hi Jim, Well, you may be right about al Qaeda not seeing an opportunity to raise your insurance rates, but others certainly seem willing to see the opportunity in adversity. I read Warren Buffett's comments on General Re's losses a few weeks after 9/11. He stated that the company's exposure looked to be about $2.2 Billion. However, due to the fact that this would tip the company from profitability for the year, there would be a favorable tax consequence and the actual cash cost to General Re would be substantially less. The company was very adequately reserved for the event. So, along with the squeeze that the P&Ls are putting on commercial insurance purchasers today, it appears that the race to rachet rates is going to affect the whole market. Interesting. Can we imagine that any state insurance commmissioners (or provincial in your case) will be looking into price gouging by the carriers? We can be sure that the President won't be using the bully pulpit to talk his insurance exec contributors into a compassionate stance for the public's and the economy's sake...... Just curious, can you ask your insurer for a discount for a terror exclusion? <g> -R.