Of course, providing insurance against catastrophic events destroying financial wealth was the reason why PAYG social security systems were introduced, most of them in the aftermath of the Great Depression and of the hyper-inflation following WWII. 21 However, social security systems came under strain in most developed countries for several wellknown reasons.
In fact, many institutions already have both of these elements in place and may not need to adjust their practices very much. I believe we are all aware of the central role that CRE lending played in the banking problems of the late 1980s and early 1990s.