Look. I know it sounds good to say, hey, there may be a catastrophic event every 100 years, let's factor that into our costs as a collective industry so that we

Look. I know it sounds good to say, hey, there may be a catastrophic event every 100 years, let's factor that into our costs as a collective industry so that we don't all die when it happens. But realistically, you're going to get laughed out of the park. Cheating on longer term costs to gain competitive advantage in the short term is rampant and part of how capitalism works. An example of this kind of thinking - "if I cut my price by 5% by not paying for 100 year catastrophe insurance, then I will have an edge over my competitors who are paying that 5% for 100 year catastrophe insurance." This is actually how all industries are run in the modern era. To compensate, western companies generally have strong finance functions to find other ways to survive. Public companies raise capital by selling shares. You can also take a loan, reduce opex, or rely on your savings. Relying on your savings is relying on your past. Everything else is, at least in part, drawing from your future. It's the private SMEs that have the most risk in this model because they lack similar access to capital as publicly traded companies. If SMEs do not have substantial marginal profit, they are playing a very risky game.