Railroad Reinsurnce

[Anonymous]

My son in the insurance business reviewed this site and has these comments.

1. Alexander Re has not existed in at least 5 years, now AON Re.

2. I guess they could organize as a group for buying power.

3. One would imagine excursion railroads are relatively hazardous and reinsurance companies do not provide low cost deals when they expect losses.

[jchnhtfd]

QUOTE: Originally posted by Peterson6868

Amtrak competes against Greyhound in that it provides bus service in California

Which argument has been made -- with dismaying success -- by the motor bus industry to the Federal DOT, and is one of the reasons why Amtrak has a bad time getting funding.[xx(] (You might want to check out the regulatory and legislative history behind New Hampshire's refusal to fund its share of the Downeaster, also -- a really sick story of influence-peddling along these lines... oh wait, though. 'Campaign contributions' aren't bribes, are they? I forgot...)

What the motor transit industry fails to mention is the subsidy which they get from the government through highway financing, or such things as using Joe's Corner Pawn Shoppe tax free for their 'stations'. Don't get me going.[:(]

Reinsurance is a very robust industry. It is also a very savvy industry. The suggestion that groups of tourist railroads get together to look at packages, though, has a good deal of merit -- if a good deal of practical difficulty.

[tree68]

QUOTE: Originally posted by Peterson6868

Amtrak competes against Greyhound in that it provides bus service in California

Amtrak is not the government. It is a corporation getting financial support of the government. I'm sure someone can provide the gory details.

That said - Amtrak is likely providing bus service which serves as a feeder (or bridge) to its rail services, as opposed to Greyhound's intercity bus service.

Taking your statement a step further, one could surmise that Amtrak is competing with Greyhound nationwide by providing intercity passenger service. But it doesn't matter, since Amtrak isn't a government agency as such.

[Anonymous]

Amtrak competes against Greyhound in that it provides bus service in California

[gabe]

QUOTE: Originally posted by Peterson6868

QUOTE: Originally posted by mhurley87f

There must be merit in your Preserved Railways coming together to make a market presentation to potential Insurers, perhaps via a mega Broker like Marsh McLennan. There's potentially quite a bit of premium income up for grabs, and neat packaging via layering excess levelsetc., might well effect savings all round.

Uberrimae fideii et nil desperandum !!

spoken like a true insurance guru[:)]
As far as goverment in the insuarnce buisness,,,what about federal crop insuance?

The Federal Government also offers flood insurance, and I think "war" insurance for certain industries, and competes with private industry in many instances (I hope no one is willing to admit they have been the federal government's guest at the Mustang Ranch, but if you have you were the only one getting (fill in your favorite double entendre) by the federal government [:0], as it was competing with many similar establishments.

But that is not what LC said. He said the "FRA" may not "compete" with private insurance companies. You are distorting his position while arguing against it.

Gabe

[Anonymous]

QUOTE: Originally posted by mhurley87f

There must be merit in your Preserved Railways coming together to make a market presentation to potential Insurers, perhaps via a mega Broker like Marsh McLennan. There's potentially quite a bit of premium income up for grabs, and neat packaging via layering excess levelsetc., might well effect savings all round.

Uberrimae fideii et nil desperandum !!

spoken like a true insurance guru[:)]
As far as goverment in the insuarnce buisness,,,what about federal crop insuance?

[mhurley87f]

There must be merit in your Preserved Railways coming together to make a market presentation to potential Insurers, perhaps via a mega Broker like Marsh McLennan. There's potentially quite a bit of premium income up for grabs, and neat packaging via layering excess levelsetc., might well effect savings all round.

Uberrimae fideii et nil desperandum !!

[dldance]

Reinsurance works when the first-line insurance company is purchasing a package to cover a broad package of policies to spread the risk to the reinsurer. It is unlikely to be a solution to excursion insurance rates.

dd

[Anonymous]

The FRA is a government agency and is prohibited by law from competing with private business.

Another past Pluto idea...

LC

[CSSHEGEWISCH]

Reinsurance is a method used by the first-line insurance carriers to reduce their own risk; e.g. State Farm writes a high-premium policy to cover your Ferrari Testarossa and in turn seeks out a reinsurance company to write a separate policy to absorb part of State Farm's risk in insuring the Ferrari.

Reinsurance is a pretty involved business and I can't see the FRA or any other agency getting into this market.

[Anonymous]

Well a option here would be....Reinsurance...In engli***he insurance copmany buys a insurance policy on the insurance.Sometimes the insurance co. buys a policy on the insurance which in turn that insurance company buys a policy on that insuarnce policy to spread the risk around. Alexezader Re is sucha company. Now perhaps the FRA could underwrite excursioans for a fee...