> it's easy to think that "all insurance is the same"
Such an assumption is not necessary. (The difference between consumer and commercial insurance is also not germane when discussing a novel bonding scheme.)
If you’re getting thrown off by the home insurance analogy, think regulatory capital instead.
> regulatory protections that apply to home insurance are very different to the ones applying to corporate insurance
We’re discussing a hypothetical regulatory environment. Given the insurance is guaranteeing consumer protections, one would expect it to be strict.
Such an assumption is not necessary. (The difference between consumer and commercial insurance is also not germane when discussing a novel bonding scheme.)
If you’re getting thrown off by the home insurance analogy, think regulatory capital instead.
> regulatory protections that apply to home insurance are very different to the ones applying to corporate insurance
We’re discussing a hypothetical regulatory environment. Given the insurance is guaranteeing consumer protections, one would expect it to be strict.