I get a question about investing in insurance companies very often. Dividend yields are high, it is a growth sector and when interest rates go up, insurance should do well. However, there is little moat, things depends on regulators, rating agencies and the industry gets into big trouble very often. It has been the case in 2009, 2002 etc. Plus, except for BRK, most insurance companies went bust in the last 40 years (GEICO almost too before BRK bought it all).

The thing is that you can't have anything special when it comes to insurance, which is something I need when it comes to investing. If I would be managing the float, that would be interesting, but given I am not, it simply doesn't feel right. Below you have an excellent overview of the industry with two links for reports on how to value insurance companies and an overview of the industry.

The research is here, perhaps in another 2002, 2009 moment, we will be looking again at insurers, but let me hear about bankruptcies and trouble first.