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Insurance companies all take out policies with each other to protect/cover themselves when they have to pay out claims.
For instance, you have homeowners insurance with Nationwide. You have a $5,000 claim that they pay you. Nationwide is not out $5K, because they pool the risk with other insurance compaines. AllState, Farmers, Prudential, State Farm etc. insured Nationwide for claims they have to pay out.
Then, Nationwide raises your premiums a little (or a lot) when your next yearly renewal comes around.
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We all must suffer from one of two pains. The pain of discipline or the pain of regret. The difference is: discipline weighs ounces, while regret weighs tons.
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