It's worth noting that it is common practice for potential large claims capable of sinking a single insurer to be distributed over the wider market.
Other than that, you make a good point, and history bares it out. Insurance companies aren't gamblers, they aren't willing to support minutely-likely but stratospherically-high-cost events, even if they can see high profit margines. Bottom line: they really understand risk.
Other than that, you make a good point, and history bares it out. Insurance companies aren't gamblers, they aren't willing to support minutely-likely but stratospherically-high-cost events, even if they can see high profit margines. Bottom line: they really understand risk.
http://en.wikipedia.org/wiki/American_International_Group#Fi...
Note that the $441 billion was just for a small division inside of AIG. The bigger divisions are obviously capable of handling more.