Hedging Tail Risk

Interesting article in Bloomberg about Wall Street's focus on creating products and funds to hedge tail risk or extreme downside exposure:

http://noir.bloomberg.com/apps/news?pid=20601010&sid=a0tbiS7HfS60

Wonder if the increased demand for certain derivatives to create these offerings will affect the cost of annuities since insurers are in the same market for many of these derivatives?

Forums: 

A related and recent article from the NYT on hedging tail risk:

http://dealbook.nytimes.com/2011/06/29/a-new-investment-strategy-preparing-for-end-times/