Just to update this thread, we have now introduced market-wide excess-of-loss reinsurance, or to put it more simply, claims above a certain threshold are now capped.
To see the reasoning and some more updates see this announcement.
The short version is, yes this is part of insurance markets in general and big claims happen, but big claims that wipe a company out completely don’t happen to many companies in 1 year because of mechanisms in place such as reinsurance (and yes, I realise I am saying this in a COVID year) 