Sure! BP could just get an insurance policy from a reputable insurance provider like...AIG. What could possibly go wrong? I mean, a reputable insurance company

Sure! BP could just get an insurance policy from a reputable insurance provider like...AIG. What could possibly go wrong? I mean, a reputable insurance company like AIG would never, ever, ever offer policies for complex products that it did not fully understand for prices so low that it couldn't cover the risks involved. Insurance company officials would never ever ever cut lots of fundamentally unsound deals in exchange for big bonuses. And even if they did, such behavior could never blow up and eliminate a few trillion dollars of value in a massive economic collapse. That's totally absurd. Really now, this "solution" boils down to "assume the existence of insurance companies that act radically differently from any insurance companies we have experience with"...tis much like "now, assume a can opener".