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For three decades now, I’ve heard insurance officials complain about disaster losses in the manner of fairy tale icon Goldilocks when she visited the home of the three proverbial bears. Carriers never seem to be comfortable with the level of catastrophe claims—either there are way too many or far too few.

This makes me wonder what level of cat losses would be “just right” for the industry’s bottom line, or even if there is such a magic number.

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