Friedberg: Insurers' zero loss tolerance lets cheap drone attacks freeze trade
David Friedberg · E158: Global trade disrupted, Adobe/Figma canceled, realtors sued, Trump blocked · Dec 23, 2023 · at 33:55
David Friedberg (Production Board / All-In podcast co-host) analyzes how low-cost Houthi drone strikes in the Red Sea exert asymmetric economic leverage by forcing maritime insurers to revoke coverage.
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“If you send a drone and it blows up on a ship and it costs you a couple thousand bucks to do that, the lack of risk tolerance, the fact that the insurance companies won't insure the ship anymore means that now that ship can't travel and that's tens of millions of dollars of, you know, commerce that gets shut down off of a few thousand dollar investment.”
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