My vague understanding is that there is an entire sub-industry of re-insurance in which casualty insurance companies insure each other’s policies, thus spreading the risk across the entire insurance industry and preventing any major catastrophe from bankrupting anyone.
I don’t know if life insurance companies need to do that. After all, in any large population the death rate is fairly predictable. But what about during pandemics?
My vague understanding is that there is an entire sub-industry of re-insurance in which casualty insurance companies insure each other’s policies, thus spreading the risk across the entire insurance industry and preventing any major catastrophe from bankrupting anyone.
I don’t know if life insurance companies need to do that. After all, in any large population the death rate is fairly predictable. But what about during pandemics?