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Subject:  Re: Catastrophe Modeling: A New Approach to Mana Date:  4/25/2005  7:31 PM
Author:  jrr7 Number:  293 of 297

Yeah, that's a better way of looking at things. I was probably being short-sighted.

I was just unhappy that FL let insurance companies set up subsidiaries in the state that could trade on the good name of the parent, but without any obligation on the part of the parent to bail out the subsidiary if there are a lot of losses. The risks should be spread over the whole country.

I believe the state said if you are not going to write P&C then you can not write auto and other forms that are more profitable

Why is one form of insurance more profitable than others? Shouldn't competition even things out? Why do the insurance companies all try to outdo each other on low prices for P&C, but don't compete on price for auto or life?
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