2min chapter

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437. Many Businesses Thought They Were Insured for a Pandemic. They Weren’t.

Freakonomics Radio

CHAPTER

Insurance Against Wildfires - Is It Possible?

We do a lot of big natural catastrophe insurance at lloyd's. One of our biggest lines of business isa, hurricanes and wind storms in north america. Are you involved in a insurance against wildfires at all? Yes, i'm afraid we are. So how is it most possible for lloyds to lose a lot of money in a given year? The issue would be that we underwrite in reasonably large size, very severe, theoretically infrequent events. And so if those events come together, it can create real challenges for us....

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