Stock Insurance

Can anyone tell me why or why not insurance on stocks (which currently does not exist) would work? I was thinking something like an investor will pay a a semi-annual, quarterly, or monthly premium to insure their stock investment completely (i.e. ONLY if they lost money they could cash in and get it all back). This seems similar to a credit defualt swap but on stocks not bonds. I have a hard time believing this has not been thought of and is not being used on a grand-scale if there is not some fundamental flaw with the idea? Can someone enlighten me on this and tell me why not this idea works?

 

Hi serenepumpkin, the silence is deafening, sorry about that.... Any of the threads below helpful?

  • Insurance-Linked Securities- Types of bonds Does anyone here know something about Insurance-Linked Securities? I am talking about cat bond ... (catastrophe bond), longevity bond, mortality bond, etc., the kind of securitiess that transfer the risk from ... the insurance companies to the investors. Apparently these animals have been around for sometime. What ...
  • Fund of Funds and Asset Modeling at Insurance company Modeling Group (Part of the Asset Liability Management Department) at a big life insurance company. ... that the ALM job is at an insurance company negatively affect my resume? At the FoF's am ... as Public Corporate Bonds, over many interest rate scenarios and be able to explain any projection ...
  • Why insurance companies are bad for a finance career really curious why insurance isn't counted as a serious financial product, apart from equity, debt, ... commodities and FX? And why my ibank friends hate insurance guys. Is it because they always try to sell ... insurance products to their friends or relatives? But as we understand it, ibank is sales in nature as well. ...
  • The Forgotten Cousin of Finance: Commercial Insurance A commercial underwriter is the liason between the insurance broker and the insurance company, which prices the ... has quite a bit of legal understanding (most of insurance is just a legally binding contract which ... 125+ Chief Underwriting Officer (xxx) 200k Insurance really gives lots of merit to performance and ...
  • Shadow Insurance 101: The downfall of the insurance industry? I work in the insurance sector, primarily dealing with derivatives and collateral needs for ... institutions. I haven't seen much on this site about the insurance sector in particular...though there has ... perceived boring world of insurance. I've tried to boil this down to something very very basic, so ...
  • F100 Corp Fin FLDP vs. F100 Insurance FLDP better long-term growth opportunities to enter those industries? corporate finance insurance fldp ... I have a few days to decide between two offers, one in a corporate finance FLVP role at a top ... defense contractor and another FLDP at a major insurance firm. The comp is essentially the same, both have ...
  • Investment Analyst at Insurance Firm to Fund Manager a CFA or Masters in Applied Finance in the near future? Thanks for any input insurance fund manager CFA ... a large Insurance firm's investment management team on fixed income. I hope to eventually work at ... Analyst at an Insurance firm looked down upon when applying for large Fund Managers? 2. Should I pursue ...
  • Life insurance company Real Estate "prestige", and exit ops was not really discussed frequently is where life insurer real estate analysts fit in the grand ... with a finance degree, and an average GPA. My current program will give me good exposure to all parts ... from similar backgrounds. Thanks! Real Estate repe insurance company life insurance ...
  • More suggestions...

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