by Michael J. Panzner
Aug. 3, 2007
In Chapter 13 of Financial Armageddon, I touch upon the issue of insurance and the risks that Americans need to be aware of in the troubled times ahead when choosing providers, deciding on coverage options, and selecting and maintaining policies. Among other things, I note that:
besieged by financial pressures, insurers are likely to revoke many existing policies following claims. In some cases, cancellations will come even in the absence of misfortune, as entire underwriting lines or geographic regions are eliminated because of losses. Many policies will offer less value for the money. Rising red ink, falling investment returns, and growing counterparty woes will leave numerous insurers at risk of failing themselves. Under the circumstances, they will inevitably boost premiums, scale back coverage, and take a much harder line about honoring the terms of outstanding policies.
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