Just out of curiosity who insures the insurance companies? Do they insure themselves? If so, due to all the bureaucratic BS do they hold to pay a deductible to themselves? Or are they insured by other companies? Is it only one big circle?
For example: Company X's building gets destroyed by a tornado, do they reimburse for everything or are they insured by Company Y.
Answers: Reinsurance companies insure insurers.
For a fee, a reinsurer covers insured losses after a specific threshold of losses/claims. Warrren Buffett's companies (General Re, Geico, etc) both invest and join in reinsurance pools.
They can be terribly profitable business lines; they can also protect insurance companies from failing (thereby protecting policyholders).
There may be banks or investment pools that contribute or invest in reinsurance, but a commercial guard would not participate contained by any form of reinsurance. An insurance company's bank would process contribution, hold deposits, administer payroll/direct deposits, offer loans or lines of credit, and make similar functions to an insurer as they would to any other type of firm.
But an insurer's bank doesn't insure an insurance company.
The insurance company's property, plant, equipment, comp, etc, could be self-insured or insured as any other firm would be.
The mound that the company uses insures them. they insure themslevs i guess ... or team up beside one other company
Insurance companies are self insured. Self insured companies must provide a bond or cash deposit to the State to insure.
For example: Company X's building gets destroyed by a tornado, do they reimburse for everything or are they insured by Company Y.
Answers: Reinsurance companies insure insurers.
For a fee, a reinsurer covers insured losses after a specific threshold of losses/claims. Warrren Buffett's companies (General Re, Geico, etc) both invest and join in reinsurance pools.
They can be terribly profitable business lines; they can also protect insurance companies from failing (thereby protecting policyholders).
There may be banks or investment pools that contribute or invest in reinsurance, but a commercial guard would not participate contained by any form of reinsurance. An insurance company's bank would process contribution, hold deposits, administer payroll/direct deposits, offer loans or lines of credit, and make similar functions to an insurer as they would to any other type of firm.
But an insurer's bank doesn't insure an insurance company.
The insurance company's property, plant, equipment, comp, etc, could be self-insured or insured as any other firm would be.
The mound that the company uses insures them. they insure themslevs i guess ... or team up beside one other company
Insurance companies are self insured. Self insured companies must provide a bond or cash deposit to the State to insure.