Are you claiming that the entities on the other side of this trade (the ones who paid to be insured againist a catastrophic loss) aren't insured againist terrorism being the spark that starts the collaspe? I thought he was insuring againist a 30% decline in the market, I doubt there are any provisions as to what event causes this decline. You should probably be less quick to jump on others back.
billion dollar plus bet made by buffet on equities
- Thread starter SethArb
- Start date
Are you claiming that the entities on the other side of this trade (the ones who paid to be insured againist a catastrophic loss) aren't insured againist terrorism being the spark that starts the collaspe? I thought he was insuring againist a 30% decline in the market, I doubt there are any provisions as to what event causes this decline. You should probably be less quick to jump on others back.
I know nothing about what the equity index policy stipulates, and may or may not hold terrorism clauses in that contract.
I was referring to liability policies in general. Our esteemed poster indicated that the Oracle of Omaha is a fear monger and hikes mom and pop's liability premiums due to terrorism coverage. Since I, myself run a regional insurance company, I am well aware of the premiums we are allowed to charge. In my state, terrorism premium can not exceed one tenth of one percent on any property/casualty policy.
In fact, insurance companies are lobbying Congress to remove these mandated coverages. Terrorism is not something our actuaries can adequately rate.
