Today you can insure against systemic risk through re-insursnce in other countries.. this should be a benefit from globalization, right?
So why we keep allowing insurance companies to make these exclusions?
If there is systemic risks to the entire planet, then an insurance company should just go bankrupt.. I mean the survival of a company isn't very important if we talking about the apocalypse :)
> So why we keep allowing insurance companies to make these exclusions?
In general, we don't have to "allow" contracts between two private parties to happen. We can "not allow" (i.e., outlaw) certain contracts, but an insurance company and a private party can (and should!) set up the contract between them however they please. Especially in a case like this, where the contract is huge, and probably had teams of lawyers from both sides going over all its details.
So why we keep allowing insurance companies to make these exclusions?
If there is systemic risks to the entire planet, then an insurance company should just go bankrupt.. I mean the survival of a company isn't very important if we talking about the apocalypse :)