[adgjlsfhk1]

insurance is best for individually unlikely but societally likely items. otherwise pricing it is really hard.

[hdgvhicv]

Fire burns your house down, insurance is easy.

Asteroid hits New York, insurance won’t pay out.

[lazide]

Or in many of these scenarios, can’t pay out, because they’re bankrupt. The biggest issue with black swan events (in the proper usage) is everyone is screwed because no one saw it coming and/or it’s so widespread no one can do anything about it for individuals.