Instead of passing through bankruptcy, insolvent life insurers have all their liabilities—in particular the policyholder claims—paid for by state guaranty funds.
Life insurance companies invest your money in the stock market - they only need to pay it back after your death which is hopefully in a while and not like tomorrow. They’re involved in more risky investments and might bust regarding the AI bubble.
There’s a mechanism that protects peoples savings with which they basically “insure” your savings for a little fee in case they go bankrupt. The problem is, that this fee will often be reimbursed by the state (and as such by the tax payer). So in the end, they get the gains from those investments and if they fail too much, all the risk is averted and paid for by the public.
tl;dr:
Life insurance companies invest your money in the stock market - they only need to pay it back after your death which is hopefully in a while and not like tomorrow. They’re involved in more risky investments and might bust regarding the AI bubble.
There’s a mechanism that protects peoples savings with which they basically “insure” your savings for a little fee in case they go bankrupt. The problem is, that this fee will often be reimbursed by the state (and as such by the tax payer). So in the end, they get the gains from those investments and if they fail too much, all the risk is averted and paid for by the public.