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insurance industry

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The God Clause and the Reinsurance Industry

On the insurer’s insurer and calculating the risk of modern catastrophe:

Reinsurers are ultimately responsible for every new thing that God can come up with. As losses grew this decade, year by year, reinsurers have been working to figure out what they can do to make the God clause smaller, to reduce their exposure. They have billions of dollars at stake. They are very good at thinking about the world to come.