That is what insurance companies do.
Can’t talk to much about it, but the scene in the article doesn’t surprise me. When you shift the liability to a third party, they demand a large part of control to go with it.
I agree with you. Insurance companies are there to mitigate the risk of having sponsor assets committed/wiped out early, i.e. having the sponsor go bankrupt before all claims have come forward, which makes it critical for the sponsor to accurately forecasts how many claims they anticipate receiving/paying out on. Generally speaking, the formula is assets divided by number of anticipated payouts equals amount per individual payout.