4 ms·

then 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 ago
  Sorry, I barely understand, what insurance against economic crashes?
  • Chris2048 7y ago
    I 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 ago
  They are typically exempt in case of natural disasters, war, force majeur, nuclear effects, and a well-thought-out plethora of tail risk events.
  • juskrey 7y ago
    Yes, to be exempt from tails is basically the definition of their business.
    • Chris2048 7y ago
      Whose business? Those that don't cede such risk to larger entities?
      • juskrey 7y ago
        And larger entities, I guess, are connected to some extraterrestrial gold source, right?
        • Chris2048 7y ago
          no, they have limits. They still insure those types of risks (natural disasters, etc).
        • deleted 7y ago
          [deleted]
  • Chris2048 7y ago
    Some (re-)insurance companies specialise in exactly these kind of things.