Can Insurance company go bankrupt form a disaster?
Insurance Companies are regulated and are required to have access to funds to pay for every policy they write. They do that through their own capital, like investments, cash, etc. but they also insure themselves through other companies. This is called re-insurance and is very common. If an insurance company had to pay claims for everyone they insure at the same time, most of them would go bankrupt, but the claims would be paid. You’d just have to find a new insurance company.
