Not inherently, when the numbers get big - strange things happen. It's not unreasonable that there would be insurance of insurance - it's also not unreasonable

Not inherently, when the numbers get big - strange things happen. It's not unreasonable that there would be insurance of insurance - it's also not unreasonable that there would be market traded contracts for the insurance of insurance. Provided that all parties can maintain their obligations under the contract... which may be a dubious/untested claim.