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A comment on Insurance is like gambling, don't overdo it. Parent comment

Re:Insurance is like gambling, don't overdo it by lclarkmichalek on Sunday June 20, 2021 @04:21AM (#27568182)
> they care about the extremes too of course, since they wouldn't want a bunch of payouts at the same time

Isn’t that pretty much handled by reinsurance?

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Re:Insurance is like gambling, don't overdo it by lordnacho on Sunday June 20, 2021 @04:42AM (#27568270)
Yep, there's a whole market in insurance risk where it can be sliced and diced and traded, much like most financial risks.
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Re:Insurance is like gambling, don't overdo it by occz on Sunday June 20, 2021 @04:48AM (#27568289)
That's correct. As an insurance company you buy reinsurance to insure yourself from catastrophic outcomes (i.e too many claims for your reserves to handle).
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