Insurance companies make money by taking in premiums, investing that pool of money wisely, then using the pool of money to pay out on claims. That’s why Warren Buffett decided to get into the insurance business. Berkshire Hathaway gave him a steady stream of cash from insurance premiums, which he used to fund his investing activities. For this reason, coronavirus is a unique challenge for insurers. It’s putting pressure on claims at the same time as it’s knocking the value of the assets used to pay for those claims. A hurricane, for example, might cost the insurance industry billions in…
Don’t miss out on what is going on with our daily unique stories from our team of skilled journalists and insightful commentators. Members of The Currency get full access to over 4,000 exclusive interviews, investigations, and analysis, plus over 460 podcasts. Annual membership is just €200 for the first year, a saving of €100. Or try The Currency for the first month for a special introductory rate of €5, a saving of €20. Cancel at any time. To become a member today click here.
Join The Currency
INTRODUCTORY OFFER: Full annual membership for just €200.