> The article also claims that "unexpected mortality" of 1.1% of its portfolio could bankrupt it. If a lot of people die suddenly, this could cause another econ

> The article also claims that "unexpected mortality" of 1.1% of its portfolio could bankrupt it. If a lot of people die suddenly, this could cause another economic crisis in the US. Isn't that just a feature of insurance companies. My understanding is most large insurance companies are too big to fail and are an unexpected event from being insolvent and needing a taxpayer bailout. As long as everything runs within the parameters they set up, they are fine raking in the premiums. Anything out of bounds and they are bankrupt. And as they tighten the parameters to squeeze out more profits, the less room they have for error. Whether we like it or not, private insurers are backstopped by the government. A prime case of privatized profits and socialized risk.