Diffusion of risk does not make it go away, and that diffusion is not what makes insurance profitable. You can insure things like 'hole in one' prize money on a

Diffusion of risk does not make it go away, and that diffusion is not what makes insurance profitable. You can insure things like 'hole in one' prize money on an individual basis - it's up to the insurer to set the price and they can and frequently do one-offs. Astute insurers would see the proliferation of hives as an insurance risk and up their rates accordingly which would result in more Beekeepers dropping out of the market. At which time they will likely complain to the government about insurers putting them out of business. I should point out that they could likely have bought insurance for their exact circumstance but they also likely would not have liked the price. In effect they're generally asking for cheap insurance - which is like asking for free money. As best I can tell the failures of the markets in flood insurance are the results of government interventions.