This is just my personal view. It is not related to any numerical calculation nor computational programming and insurance products advertisement.
The following is quoted from SMH.com.au
http://www.smh.com.au/business/plea-to-broaden-scope-of-business-flood-relief-20110126-1a5ch.html
Plea to broaden scope
of business flood relief
BUSINESSES in Queensland that are too big to access flood-relief assistance are in danger of going under, says the state's Chamber of Commerce and Industry....
The AIG contacted more than 200 of its members in affected areas and more than 40 per cent of them were inundated. More than half of these would be closed for more than a month. Ms Ridout said she would like to see some of the eligibility for low-interest loans widened to include medium-sized businesses.
The federal opposition’s small-business spokesman, Bruce Billson, said grants were confusing for many small to medium-sized enterprises. ‘‘The government has asked insurers to show compassion and commonsense. Now it’s time for the government to adopt its own advice.’
......
I guess most people would think about disaster insurance/ catastrophe insurance.
Let's think about what would the insurer do then.
I have few for thoughts for this.
1. AIG think about reinsurance. I guess the AIG group would most probably do as the cost is a lot.
2. Will they earn a profit? That's the problem. I guess they barely hit the profit. Most residents would never think that they would face flooding in their life time. Hence, they won't think about water insurance. Instead, they would think about fire insurance due to the trauma of fire blaze few years back.
3. Life insurance does not cover the loss of them. I guess the government would launch some ad-hoc solution to relieve the pain of people there. (I hope. Aussies sometimes are lay back) What could people do then if they have nothing? Theft occurs. So other kinds of insurance would take into effect as well such as household insurance.
4. Risk of default? Who would think about this? Will people claim a lot? I am not sure. I am green here. Let's see what will the Australia government do.
