"In most businesses, of course, insolvent companies run out of cash. Insurance is different: you can be broke but flush. Since cash comes in at the inception of an insurance policy and losses are paid much later, insolvent insurers don't run out of cash until long after they have run out of net worth. In fact, these "walking dead" often redouble their efforts to write business, accepting almost any price or risk, simply to keep the cash flowing in."
"Practically, insurance policy or coverage transfers an UNCERTAIN and possibly HIGH financial loss or CATASTROPHE in to a certain but small cost (premium) for the insured or policyholder".
Occurence of accidents, death, disasters and catastrophes that are NOT INSURED by individuals, organisations, companies and even governments are not only DEVASTATING to such individuals, organisations and companies BUT also very costly to governments and the entire society through unbudgeted expenditure and increased taxes.
Should you want to have more practical understanding of insurance,
link up www.isolacassociates.com or send email to isolac75@yahoo.com or call 08087854495/07032754497
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"In most businesses, of course, insolvent companies run out of cash. Insurance is different: you can be broke but flush. Since cash comes in at the inception of an insurance policy and losses are paid much later, insolvent insurers don't run out of cash until long after they have run out of net worth. In fact, these "walking dead" often redouble their efforts to write business, accepting almost any price or risk, simply to keep the cash flowing in."
Warren Buffet annual Berkshire Hathway letter.
Visit https://isolacassociates.com.
"Practically, insurance policy or coverage transfers an UNCERTAIN and possibly HIGH financial loss or CATASTROPHE in to a certain but small cost (premium) for the insured or policyholder".
Visit https://isolacassociates.com for more insights on Insurance and Employee Benefits. Or send email to isolac75@yahoo.com on any insurance claim and issue. Insurance Brokage Of the Future – Isolac&Associates
Occurence of accidents, death, disasters and catastrophes that are NOT INSURED by individuals, organisations, companies and even governments are not only DEVASTATING to such individuals, organisations and companies BUT also very costly to governments and the entire society through unbudgeted expenditure and increased taxes.
Should you want to have more practical understanding of insurance,
link up www.isolacassociates.com or send email to isolac75@yahoo.com or call 08087854495/07032754497