Jump to content

Writing a Policy, But Don't Cap the Loss


Recommended Posts

I believe Buffett has talked about never writing an insurance policy without having a cap on it.  You never want to have an unending run on a policy.


Not exactly, but the travel insurance companies in India have been writing policies in Rupee but paying in foreign currency like US or Euro dollars.  With the Rupee now down around 25% in the last several months, oops! Loss expenses now just went up 25% and could go higher.  It does not appear they were hedging currency exposure to account for such potentialities.



Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...