For the insurance company also gets to hold that premium income until the insured losses need to be paid.
Over time, in a competitive market, we actually expect them to lose on the actual business of collecting premiums and paying out for insured losses.
Insurance companies use this module to assess and estimate insured losses by applying the policy conditions of those in the region to the total loss estimates.
Insured losses generally are only a portion of total losses.
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Swiss Reinsurance, the world's second-largest reinsurer, told the BBC News website that economic losses were estimated to be higher than insured losses (expected to be around 500m Swiss Francs).
This is no short-term uptick: insured losses due to extreme weather have been trending upward for 30 years, as the climate has changed and populations in coastal areas and other vulnerable places have grown.
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Although European officials hastily abandoned original plans to impose losses even on insured depositors, and rushed to stress that Cyprus's problems were unique, savers in other countries, especially those whose banking sectors were under stress, appear to have feared that their savings could face similar treatment.
Glass Steagall was passed to prevent commercial banks taking government insured deposits from failing due to losses incurred through riskier investment banking activities (issuing stock and other securities).
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Its deposits are FDIC-insured against bank failures (not, of course, against currency losses).
When a federally insured bank makes bets, he notes, it exposes the government to gigantic losses.
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The insurer's contract language, she says, reflects that, "like most homeowner insurers, Allstate provides coverage against losses that occur only on a chance basis, " or where the insured cannot control the loss.
But the bank losses are a much bigger problem for investors than depositors whose money is typically insured by the federal government.
Government sources point out, though, that the amount of toxic debt being insured under APS is smaller than first estimated and RBS will take on a bigger share of potential losses.
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