No. of Recommendations: 12
Interesting, bold take by Ajit. Probably common sense obvious. But still surprised it didn’t get more attention. It got mine. Hearing him say it so matter of fact…
When you think about it..
A.) Climate Change Fear creates positive pricing (risk is permanent its either priced or it’s not priced—we get price). The more DIRE the forecast (unknown result) the HIGHER the rate (guaranteed & locked in upfront)
B.) Inflation turns 1-2% Float into 5.4% Float.
Rewind pre climate change hype when the climate actually MAY have been changing and we didn’t know it,rates stunk, competition for ReInsurance was everywhere, and float earned 2%?
Today: much money up front, much more money holding it.
