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Question 1: 

What is reinsurance? What has caused Berkshire Hathaway to re-examine its reinsurance business?

Question 2:

How should a business like Berkshire Hathaway decide whether it is time to scale back one of its lines of business?

Question 3:

What is float? Why has Warren Buffett always liked insurance because of float?

Question 4:

Why do you think it has taken so long for competition to drive out high profits in the reinsurance industry?

5

Would you buy insurance online? Why or why not?

Jul 10th, 2015

Thank you for the opportunity to help you with your question!

 1. insurance that is purchased by an insurance company .The insurance companies  directly or through a broker as a means of risk management, sometimes in practice including tax mitigation .

2. by considering the population attracted to the business

3. in insurance it mean other peoples money. He says that it has cost us nothing, and in fact has made us money. Though our float is shown on our balance sheet as a liability, float is a valued capital because the insurance does not need to keep it.

4.Many people do not invest in the insurance industry.

5.yes i will buy, so that it can cover for me the risks associated with items

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 10th, 2015

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Jul 10th, 2015
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Jul 10th, 2015
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