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Oh yes you can. The insurance and reinsurance actuaries, and regulators, have done this for a very long time.
by bernardv 7y ago
Oh yes you can. The insurance and reinsurance actuaries, and regulators, have done this for a very long time.
- juskrey 7y agoInsurance and reinsurance just clip the tail contractually, they never take "infinity multiplied by some small percent" risk! They don't go underground when their client does.
- Chris2048 7y ago> they never take "infinity multiplied by some small percent" risk At what point does the tail represent "all humanity dead"? No one needs a contract for the humanly unrecoverable.
- juskrey 7y agoWe are talking about business death
- Chris2048 7y agothen the tail ends even before then, but that doesn't mean insurance companies don't pay out billions in case of an economic crash.
- juskrey 7y agoSorry, I barely understand, what insurance against economic crashes?
- Chris2048 7y agoI didn't mention "insurance against economic crashes" - there is a crash, and this has the effect of lots of payouts. Some event may cause an economic crash, companies can have insurance against business disruption. If an event suddenly causes a lot of insured business disruption, that might mean a large total payout.
- harperlee 7y agoThey are typically exempt in case of natural disasters, war, force majeur, nuclear effects, and a well-thought-out plethora of tail risk events.