Chubb Chairman and CEO Evan Greenberg sits down with 'Mad Money' host Jim Cramer to talk the insurance bull market, Berkshire Hathaway's recent investment in the company, the impact of climate change and more.
Chubb is operating in a different insurance and reinsurance business than Geico or some of its peers. Chubb used to write construction payments and performance bond contracts for multiple million dollar jobs . High high risk but extraordinarily profitable for everyone in that pyramid.
With AI and machine learning, claims risks are easily predicted and passed back to the other policyholders via premium increase. Governments need premium to support premium based taxes. There is zero incentive for government and insurance companies to improve claim experience that potentially could drive premiums lower. In Canada, cops are telling car owners to leave their keys at the door and let car thieves take the car, to prevent “serious injuries of the car owners”. Insurance companies work with governments like gangsters incentivizing people to pay protection fees.
