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A comment on California's largest home insurer won't renew 72,000 policies. Parent comment

Re:California's largest home insurer won't renew 72,000 poli... by lotsofpulp on Friday March 22, 2024 @12:02PM (#39792002)
Step 1: purchase reinsurance

Step 2: use reinsurance to cover losses

Step 3: reinsurance premiums go up or reinsurer refuses to insure you

[ Parent | on HN ]
Re:California's largest home insurer won't renew 72,000 poli... by bombcar on Friday March 22, 2024 @01:14PM (#39792799)
Sell reinsurance in a loop via tranches and everyone makes cash until the disaster happens and everything goes bankrupt.

AIG anyone?

[ Parent | on HN ]
Re:California's largest home insurer won't renew 72,000 poli... by crotchfire on Saturday March 23, 2024 @11:58PM (#39805065)
This is exactly what Lloyds does.
[ Parent | on HN ]