9 11 reinsurance questions

[deconstruct911]

Reinsurance:

Reinsurance is purchased by an insurance company (insurer) from a reinsurer as a means of risk management, transfer risk from the insurer to the reinsurer. The reinsurer and the insurer enter into a reinsurance agreement which details the conditions upon which the reinsurer would pay the insurer's losses (in terms of excess of loss or proportional to loss). The reinsurer is paid a reinsurance premium by the insurer, and the insurer issues thousands of policies.

As far as I know the two biggest reinsurers were SWISS RE & MUNICH RE.

Who were they reinsuring for?
I have heard it was AIG/MARSH who wrote the original insurance on the WTC and passed the burden onto their competition before the attack….

There were obviously many insurers in the event but I wouldn’t mind some information on the reinsurance aspect. Who were they covering?

[Ohio Joe]

1. Two things I can tell you

1 - Re-insurers and Insurance companies are not competitors.
2 - Insurance companies do not lose money. They may lose on an individual claim but overall, they do not lose money.

[deconstruct911]

2. ....

“Insurance Prices Soaring, A.I.G. Chief Says”

By JOSEPH B. TREASTER
Published: October 10, 2001

“Maurice R. Greenberg, the chief executive of the American International Group, said yesterday that insurance prices were rising ''by leaps and bounds'' in the aftermath of the terrorist attacks on the World Trade Center and the Pentagon.”

http://www.nytimes.com/2001/10/10/business/insurance-prices-soaring-aig-chief-says.html?scp=1&sq=Insurance%20Prices%20Soaring,%20A.I.G.%20Chief%20Says%20&st=cse


I'm more interest in figuring out who did the original insurance...

[Ohio Joe]

3. Do you not have google?

http://www.google.com/

It is amazing what can be found with it. I suggest you try putting in

WTC Insurance

and see what you get. What will they think of next...