[0:01]
Ajit JainBecause of climate change, clearly prices need to go up. It is difficult to be very scientific about how much the prices need to go up. They need to go up a lot, and we keep increasing prices and hope we stay ahead of the curve. But that doesn't happen in all cases. The regulators don't make it any easier by tying our feet to the ground and making it difficult for us to withdraw from certain territories or to make dramatic changes in the pricing of certain products, as a result of which a number of insurance carriers, including ourselves, have decided to not write business in certain states. I think the regulators are getting a little more realistic about the, and they are waking up to the fact that the insurance carriers need to make some kind of a return, a decent return for us to keep deploying our capital. It's a constant battle back and forth. It's been against, the capital providers these last few years, but I think we are coming back into balance. If you look at the results that have been recently announced by the insurance carriers, everyone's now making record profits. Obviously, that will not last, but certainly for the next several months, I think the insurance industry, in spite of climate change, in spite of increased risk of fires and flooding, it's going to be an okay place to be in. Climate change increases, this. And, you know, it, in the end, it makes our business bigger over time. But not if we, if we misprice them, we'll also go broke, but, uh, but we do it one year at a time overwhelmingly. And, uh, and I would say this, I would, I would rather have a jeet assessing this than any thousand hundred riders or, or insurance managers in the world. I mean, the, the factors aren't, you know, we'll take Atlantic hurricanes, which would be probably our biggest risk. You know, there's no question that you can measure the temperature of the water in the Atlantic and, and, you know, what more water does the hurricanes, but you don't know whether necessarily, whether that's good or bad, because it may cause them. cause them to turn faster. You know, it may change the path as well as the intensity and frequency of losses. But we'll write it one year at a time and we'll have a jeet underwriting it. And, you know, we don't have to tell you what's going to happen five years now or ten years from now. And people who don't have don't have sort of analytical insurance minds that comment on this subject really don't
[3:05]
Warrenexpand our knowledge it's uh it's we get a lot of letters from people that i'm sure have good iqs but they they don't really know they don't understand the insurance business and uh and they're not wrong i don't think in my mind about climate change but uh it's uh if they're not wrong i don't think in my mind about climate change but uh there was no risk there'd be no insurance business and we're in the business of evaluating it and we do it one year at a time and there's some exceptions where you can't do it where your your uh decisions extend for a long time in the future and uh we try to avoid those but again uh you don't need a thousand people analyzing water currents or i think you need you need one very, very, very smart guy. And we've got him.