Will we then regulate the insurance?

Reader comment on: Hayek and the Gulf Spill
in response to reader comment: so then don't drill!!!

Submitted by ben (United States), Jun 14, 2010 15:30

I am all for insurance, just like AIG insured against mortgage backed securities. The taxpayers ended up bailing out AIG. It is easy to foresee a similar event with oil spill insurance (if an insurance company even would sell it). With possible claims in the tens of billions of dollars, the insurance rates would have to be quite high, perhaps prohibitively so. With such high rates, many smaller players would choose not to buy it all and take their chances. To avoid this, the government would have to mandate the insurance and regulate it. We are now back to square one - government regulation. This is a market that shouldn't exist.

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