When I first started writing about credit scores more than a decade ago, few
people knew what these three-digit numbers were or how they worked.
Today most people have at least a vague understanding that credit scores
are important. But they often don’t realize how important—until they get
turned down for a loan or an apartment, or wind up paying more interest or
higher insurance premiums than they expected.
FORTY years have passed since the first German-language edition of
this volume was published. In the course of these four decades the
world has gone through many disasters and catastrophes. The
policies that brought about these unfortunate events have also
affected the nations' currency systems. Sound money gave way to
progressively depreciating fiat money. All countries are to-day
vexed by inflation and threatened by the gloomy prospect of a
complete break-down of their currencies.
The notices we issue at the commencement, agreed change to, and each
renewal of your policy show the various payment methods available to you.
A change to your policy details (for example change of address, change of car
or modifications) may affect the premium you need to pay for the remainder of
your period of cover. If a refund of $10 or more is payable, we will send you a
cheque or credit your payment card account. Any extra premium needs to be
paid by you within 14 days.
After the occurrence of a natural disaster, the reconstruction can be ﬁnanced
with catastrophe bonds (CAT bonds) or reinsurance. For insurers, reinsurers and
other corporations CAT bonds are hedging instruments that oﬀer multi year pro-
tection without the credit risk present in reinsurance by providing full collateral
for the risk limits oﬀered throught the transaction. For investors CAT bonds oﬀer
attractive returns and reduction of portfolio risk, since CAT bonds defaults are
uncorrelated with defaults of other securities.
Baryshnikov et al.