How does North Korea get its hands on hard western currency? Massive insurance fraud!

[Union Carbide]

http://www.washingtonpost.com/wp-dyn/content/article/2009/06/17/AR2009061703852.html

The $20 million birthday present and the gratitude of its recipient, who is known as the Dear Leader, were annual highlights of a sophisticated global insurance fraud that North Korea (http://www.washingtonpost.com/wp-srv/world/countries/korea.html?nav=el) has concocted to provide its communist leadership with hard currency, said Kim, who spent five years as an executive of the state insurance company in Pyongyang and worked for a year at its banking subsidiary in Singapore before defecting to South Korea (http://www.washingtonpost.com/wp-srv/world/countries/korea.html?nav=el). Commentary from Popehat (http://www.popehat.com/2009/06/18/you-can-never-find-an-insurance-defense-attorney-when-you-need-one/):
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.

Surprisingly enough, the article goes on to state that North Korea is currently having a problem finding new reinsurers.

[Henry Wilson]

Imagine the poor claim adjusters.

"Jim we'd like you to travel to North Korea to investigate an industrial fire. It seems suspicious to us."

Days later:

<through an interpreter> "Hello, I'm Jim Smith from American International Group. I'd like to ask you a few questions about the fire that occurred here Mr. Park. Did you notice any suspicious individuals that night? Did anything unusual occur? Could you smell any strange odors, such as gasoline?"

"He says 'No.'"

[Shadarr]

Surprisingly enough, the article goes on to state that North Korea is currently having a problem finding new reinsurers.

You don't say.

[Lum]

This is also why North Korea doesn't have a lot of foreign trade. They have a tendency to not pay for anything traded. Generally, people only "trade" once.

[salwon]

I think there's another word for that kind of trade.

[Calistas]

Tax?.... I threw that one out there for the teabaggers in the audience!

[russellmz00]

how the hell doesn't any western company see "business deal with north korea" and think "profit opportunity"?