How the Insurance Industry Can Help If the ATMs Stop Working

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The Black Swan

The “unthinkable” happens pretty regularly in the world of finance (roughly every 7-10 years), yet executives always seem to get blindsided when it actually occurs.  These unthinkable events now have a name – the “black swan event”, as named by Nassim Taleb in his book The Black Swan:

However, one may argue that these events are themselves predictable in that they WILL happen – that only the timing thereof is uncertain.  Now it is common for people to acknowledge in hindsight that problems were looming in 2007 & early 2008 regarding the global banking industry – but beforehand, no one seemed too concerned about it (publicly).  The term “Too Big To Fail” (TBTF) was hardly ever used during those days – now it’s a regular part of our lexicon.

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