Insurance companies like risks that are diversified over their customer base, with regular enough occurrence in the customer population that the cost of payment

Insurance companies like risks that are diversified over their customer base, with regular enough occurrence in the customer population that the cost of payments over time is relatively stable. Insurance companies absolutely abhor risks that are affecting large portion of their customer base at the same time but only rarely. Re-insurers offer some help, you can talk about some special investment vehicles where insurance companies can offload those kind of risks off their books, but in the whole, I think it is quite safe to assume that insurnace market for those kind of risks would be seriously broken.