Even if the government offers insurers a preferential deal on restructured debt, the whole industry has been knocked flat.

ECONOMIST: Russian insurance

As part of the deal, these firms are given preferential treatment by the banks, including debt-for-equity swaps, lower interest rates, and access to a pool of some 2 trillion won in new loans and trade financing.

ECONOMIST: South Korean bankruptcy

Such preferential treatment is only possible because current interest rates are so low and debt service represents only about 10% of total revenue.

FORBES: Debt Deal Is A Blank Check

And the preferential treatment received by the ECB on its Greek bonds will discourage other investors from holding sovereign debt.

FORBES: Soros: Euro Crisis Is Lethal, A Break Up Is Possible