SJ41

I have one of those in my house for special visitors.

They are buying the building not the market. The market is made up of individually capitalised syndicates www.lloyds.com/‎

What are the implications to a UK citizen of a dollar collapse?

You don't say what the weather is going to be like. Is it going to be a scorcher?

Trust me I know all this and from a purely personal point of view it would be very interesting for me if AIG goes bust. I was just pointing out to Injin that traditional Insurance was not dead and did not die "decades ago" as he stated.

I am aware that is what is being discussed. I was just pointing out that there was more to "Insurance" than this CDS nonsense, and that traditional Insurance was not a Ponzi scheme. Clarity was all I was after.

What! Insurance companies aren't insuring cars and houses anymore? Excuse me whilst I check my policy wording, if it's one of those CDS thingys I'll be livid.

I think it is debatable that what AIG were doing was strictly insurance. If they had stuck to traditional insurance they would not be in the mess that they are in. BTW all my points are related to traditional Insurance/Reinsurance, not this CDS nonsense.

Oh about 50/50 at the moment. If you have an insurance policy you cannot just ask for your money, you have to make a valid claim. The chances of everyone making a valid claim at the same time are astronomical.

So following your line of argument we should be worried about anything happening regardless of its likelihood. You have heard of risk assessment? Do you fly?

You lost me when you you said that we should really be worried about Tsunamis in the UK and Asteroid impacts. As far as your other points when put in context with your views on risk of large rocks hitting the UK, I think I can take them with a pinch of salt.

Lloyds is not the Insurance industry, it is one part of it. I was asking Injin in what loss event would Insurers be unable to pay.

And these two scenarios are likely to happen are they, if they do happen,whether Insurance is a ponzi scheme or not is a moot point. The nearest we have come to this type of scenario is in 2005 when Katrina, Rita and Wilma all hit the US in one year. These losses were all easily absorbed by the private insurance and reinsurance industry. Could you also outline the scenario were all policyholders stop buying insurance at the same time.

Injin, Could you explain in what circumstances a traditional insurer would be unable to pay a claim if asked to, bearing in mind that claims are payed every day. I think you are confusing banking with insurance. The two are not the same. In what scenario are you expecting all policy holders to make a claim all at the same time? Asteroid impact? Tsunami flooding the entire UK?