Do insurance companies have insurance? Who insures them? Themselves?

Answer 1

No one else insure the insurances companies., unless the insurance company is small and is backed up by a bigger one. The major insurance companies use a system of "premiums" and "discounts" to sort out the customers that will cost them money, and ones that will earn them money.

They issue policies(plans) over a wide demographic(people), then they just average out the numbers They would use dynamic pricing (prices that adjusts) on custumers. They just make sure they make more money than the average cost it takes to take care of all the custumers.

I only went over ONLY insurance companies(Commercial), NOT goverment insurance like FDIC

Answer 2

As a matter of fact, they do, I can't remember the exact name, but I believe it is the allied insurance company or something like that. My husband was in an accident a while back, and the other parties insurance company didn't file a claim against ours until about 2 years later.... and by then, our little hole in the wall company had gone out of business. I thought we were screwed, turns out, the insurance companies have to keep their records and a certain amount of claim money on file with this other insurance company in case these things happen. Saved me 18,000 dollars, thank goodness.

Answer 3

yes, some are self insured and some get re-insured from another company. but the gov.has regulations to try and make sure they are liquid enough in case of a catastrophic event that they are covered. if not, then the other insurance companies must pick up the tab based on a percentage that the gov. sets for all of the other insurance companies.
or pretty close to that?

Answer 4

there are two groups that could insure them.. the govt insures them to a point. when katrina hit, the govt gave some money to the insurance companies that had to pay out large sums in order to keep them from considering bankruptcy which would have messed things up even further

and there are also large banks, many in germany and switzerland, that insure companies from just about anything they want insurance on. so i imagine many of the insurance companies are insured themselves

Answer 5

The companies that insure the insurers are called reinsurers. Who insures them? Investors.

Answer 6

depends on the type of insurance company..but yes, they can write a policy for themselves and rate it the same as they would any other company.

Answer 7

They insure through "Re-insurers." Lloyds of London would be an example of a Re-insurer.

Answer 8

Yes, they have insurance on themselves. They also have "reinsurance" on the larger portions of their books of business.

Answer 9

Often they do. It's called "reinsurance". They learned it from Las Vegas bookmakers, where it's called "laying off bets".