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By the way, insurance companies balance sheets have had the same stress as banks. Many have large losses (unrealized) in their equity and bond investment portfolios, and some also have had large claims payouts because of storms, etc. So that combination puts them in financial stress and really forces rate increases.
As an insured, I try to check out the company’s financials to be sure they have the resources to pay claims (or re-insurance to backstop large ones). Like banks, it is hard to really get good, timely information. So I’m wary of the new ones (Lemonade) and smaller ones.
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