Do you think Hurricane Gustav will cause insurance companies to go bankrupt?

Question

Do you think Hurricane Gustav will cause insurance companies to go bankrupt?

Answer 1

I doubt, these company's are very rich

Answer 2

probably not..

Answer 3

Insurance companies generally do not go bankrupt.  Many of them use reinsurance companies to make sure of that.  Whenever an insurance company loses money on a major disaster, they just raise the rates for everyone else.  Profit and risk potentials are constantly being recalculated and readjusted by actuaries.

Answer 4

No. Not at all. It won't happen. I'll tell you why.

The Hurricane Katrina claims were not honored. Period. The insurance companies simply responded with, "The damage to your home was due entirely, 100% to the water, not to wind damage and that's not covered." This happened every time a claim was submitted.

The lawsuits from their dishonoring the Katrina claims will be pending for another decade. The exact same thing will happen to any claims resulting from Hurricane Gustav.