Insurance companies try to mitigate those risks in a number of ways

Now you have people who are suing McDonald's because they say McDonald's made them fat. The other type of risk that comes to mind for insurance companies to deal with is changes in mass torts, for example, the asbestos issue. There is no real historical data set to predict when or where it's going to happen.

The problem that the insurance industry has with the terrorism issue is that terrorism re-insurance is not readily available, and, when it is, it's extremely expensive. One is to get a spread of business so you don't have all your business concentrated in catastrophe-prone areas, and then, secondly, to purchase re-insurance from companies that basically sell insurance to insurance companies for that catastrophe risk, so you can remove some of the volatility. As states go through their normal political changes, they can become a more onerous environment in which to do business. The insurance industry is regulated by the states, not the federal government. The last thing that comes to mind is regulatory risk.

If, for example, you know that mold is going to become an issue because you're paying out claims on it, then what you do is you exclude it. Companies, generally speaking, can only mitigate that risk after the fact. You've got the class action lawsuits, the mold in homes issues; you get these large mass tort legal issues going on that the policies never really contemplated as a risk that would have to be covered when the policies were written, so the policies were never priced that way.

If you should ask your agent if a liability	Look at the premium and you can	Pricing a premium is one basic process for
The customer and that that the policy	And when they have a claim, they	Profitability is the biggest thing I
Insurance companies try to mitigate those	How you go about getting new customers	Marketing is obviously important
It's a combination of a lot of bad things	Terrorism has a different set of parameters	Some of these awards, at least on
There are three major types of companies	P&C insurers include State Farm	The three biggest risks insurance companies
The appearance of the injured person will	In this way, an insurer has about three	In most jurisdictions, rate and form
Governments are becoming more involved	The idea was really to spread the