Lumifer comments on Systemic risk: a moral tale of ten insurance companies - Less Wrong Discussion
You are viewing a comment permalink. View the original post to see all comments and the full post content.
You are viewing a comment permalink. View the original post to see all comments and the full post content.
Comments (18)
It becomes even clearer if, post-diversification, instead of 10 insurance companies which are absolutely identical you just have one. In this case that one company internalizes the benefits of diversification while it's obvious that the industry composed now of a single company has no diversification at all.