What they are really saying is that they can’t effectively model the risk.
Say you were an insurer… would you want to take risk for Florida hurricane losses knowing what we know?
If we want a functional insurance market in these places, we need a student loan type solution - make the Feds the reinsurer and have the insurance company mostly administer the policy.
Say you were an insurer… would you want to take risk for Florida hurricane losses knowing what we know?
If we want a functional insurance market in these places, we need a student loan type solution - make the Feds the reinsurer and have the insurance company mostly administer the policy.