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Is the world becoming uninsurable?

(charleshughsmith.substack.com)
478 points spking | 1 comments | 17 Jan 25 00:32 UTC | HN request time: 0s | source
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jobs_throwaway ◴[17 Jan 25 15:15 UTC] No.42738360[source]▶
> the entire idea of being an "insurer of last resort" is based on an unlimited supply of money to fund losses that no longer make financial sense

Key insight here. Insurer of last resort == bag-holder for negative EV proposition.

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pc86 ◴[17 Jan 25 15:47 UTC] No.42738897[source]▶
Insurer of last resort == taxpayers bailing out people who can no longer afford to live in their multi-million dollar properties but refuse to sell and move.
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njovin ◴[17 Jan 25 15:55 UTC] No.42739059[source]▶
TBF the best example of a program like this that currently exists is the National Flood Insurance Program which covers many sub-multi-million dollar homes and is billions of dollars in the hole.
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1. pc86 ◴[17 Jan 25 17:09 UTC] No.42740481{3}[source]▶
It's a pretty astounding mix of "being the most expensive insurer that exists for a particular parcel" and "completely unable to fulfill its obligations in the event of any medium- or large-scale disaster." Hence my use of the term bailout.