Reinsurance spiral....?
This is getting to resemble the Lloyds (of London) reinsurance spiral crisis from the 1980s/1990s (for those of us old enough to remember that).
It turned out that a lot of insurance was (in the end) reinsured with many of the original insurance when all of the intermediate contracts were factored out.
One large adverse event/failure and the whole spiral unwinds catastrophically...
This led to greater regulation/oversight/disclosure for good reason, some of which was that relatively unsophisticated "Names" (private individuals) made loads of money in the good times, but when it all went wrong, they were on the hook for liquidity/claims etc. and many lost everything.
Everything old is new again.