The real difference between normal insurance products and CDS

normal insurance products are against natural events, like flood, fire, death .. CDS is a product against artificial (man made) event, financial default. Only artificial event will exhibit concentrated risk, meaning default happen across its domain, since human is an animal of society, it has its heard mentality, tend to do things all at the same time. So, that is why I say CDS is not a specialty for AIG, but for GS.