Thanks for the thoughtful response! Some replies:

1. Someone is always carrying the risk; the question is, who it should be? We suggest private markets should price and carry the first $10B+ before the government backstop. That incentivizes them to price and manage it.

2. Insurance has plenty of ways to manage moral hazard (e.g. copays). Pricing any new risk is hard, but at least with AI you can run simulations, red-team, review existing data, etc.

3. We agree on existential losses, but catastrophic events can be priced and covered. Insurers enforcing compliance with audits/standards would help them reduce catastrophes, in turn reducing the risk of many existential risks.