Luckily that problem only led to the largest (so far!) recession / crisis humans have seen.
Ok snark over, but we have seen things like this before - take steam boiler production mid to late 19C. This took insurance companies simply refusing to insure anyone who did not manufacture boilers to their standards to clean up.
Something similar is needed now. Do you know why you cannot claim your covid-19 cancelled holiday from your insurance - because pandemics are not covered by travel insurance - do you know why? Because Re-insurance companies look at the likelihood of pandemics and simply refuse.
I think something different is needed - I think insurance is related to it. Basically we treat government as the insurer of last resort - but we have no real idea of the costs we are shouldering - or the risks we are ignoring.
So what if we had to have obligatory true cost insurance? Buy a house? great is it insured against flooding? Now you built on a flood plain like half of England. Fine your premiums are now twice the cost of your mortgage.
Are you selling crappy products through your business? Great please show business insurance that will make the people you rip off whole. Don't have that insurance? good luck getting anyone to buy off you.
Ok ok it's still a idea very early alpha