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Saturday, June 13, 2009

 

Revival of distributed insurance?

The Economist has an article about how the Lloyd's of London insurance market compares against the integrated insurance companies. The article even discusses how state intervention supports the megaliths at the expense of smaller rivals. Perhaps the the main downside of distributed systems is that their inherent flexibility means that they will never be "too big to fail" and will never attract bailouts from the state.

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