Storms May Cost Insurance Companies 20 Billion

Do you mean US as in USA, or US as in we the people who have to pay insurance premiums?

If you mean USA well this article is referring to reinsurers, the insurers of the insurance companies who sell directly to us. Reinsurers from around the world can take some of the risk off the U.S. insurers but then these same reinsurers are also paying out for the tsunami in Asia, the earthquakes in El Salvador and Pakistan, as well as all the hurricane damage in the U.S. and Mexico.

It's got to be said, as much as we all detest insurance companies, they do take a risk and agree to pay out when catastrophes and covered losses happen. Where would we be if we did not have them? We sure as heck would not be building cities and industries for fear of losing them and having no way to rebuild. Insurance companies are providing a service for a fee. Yes it's expensive and yes it seems, to some, that they are gouging. But what is the alternative? If the U.S. wasn't such a litigious society I am guessing we would not need to buy as much insurance as we currently do. I am speaking more commercially than personally. As for property losses, well it is common sense that an insurer will be adverse to go back to a place where they were slaughtered in claims and offer insurance again at the same price. That's just bad business and while they are in business to provide a service for a fee, they are also responsible to their shareholders and providing a return on investment.

I've thought about this a lot and I couldn't imagine what life would be like if all insurance companies went away. Life as we know it would not be the same. What premiums we would save on car insurance would have to be paid out of pocket for all the car repairs and replacement of damaged vehicles. It would take one car accident - with total destruction of the car - for a family to be without transportation. Not being able to afford to replace the vehicle, the family cannot travel to work or will have to take a job closer to home, via public transportation. The areas served by public transportation would then build up even more substantially, costing higher rents and creating more competition for jobs at these locations. Salaries would be reduced since more people are desperate to get the jobs. Oh and insurance includes workers compensation and medical insurance too so people better not get injured at work or get sick/ill because if you can't work you can't earn a paycheck and if you don't earn that paycheck you can't save to buy a new car.

And ... oh crap, my head hurts.
<<getting off soap-box>>