For context, a life insurance company has to, at a minimum, comply with a capital requirement for a 1 in 200 year event on multiple different risks. It is combined into a single number using correlations. Then life companies would themselves keep a multiple of that number, often around 2x the 1 in 200 year event number.
I guess what I’m saying is that 1 in 100 is not that unlikely, and a life company would be deemed insolvent if they can only survive a 1 in 100 year event with their available capital.
Makes sense to me. I’ve seen estates in PTA pop up within the 50-year flood line to give you a “waterside estate”. I’ve seen residents in those estates rush home during a church service because it turns out that year was the 1-in-50 year and their Landrover Discovery was discovering how deep 1m water in his garage feels like.