If North Korea is so insular and if they have no exports to speak of and if North Korean currency is less valuable than toilet paper because of its limited surface area and scratchy texture, where do they get any cash to spend abroad?
Apparently, massive insurance fraud.
In interviews and court documents, Western insurers, U.S. officials and defectors such as Kim said the impoverished and isolated North Korean government has collected hundreds of millions of dollars from some of the world's largest insurance companies on large and suspicious claims for transportation accidents, factory fires, flood damage and other alleged disasters. Still, recent attempts by international insurers to overturn North Korea's claims have failed in British courts.
I'd say that these companies should have had Patrick on the case but it would have fallen outside of his expertise. To wit, "the reinsurers had a weak case because they had contractually agreed to be bound by North Korean law." And since, in a case against the North Korean government, I assume that reduces to "the government wins", the insurance companies were pretty well fucked.
Congratulations, AIG, while the scale of your collapse was the largest, you are no longer in the running for the "Dumbest Insurance Policy Sold." I'm sure you'll clean up in the other categories, though.
Via The Awl
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