Before revision:  The analysis of losses produced in the paper suggests that the LDA approach is a useful tool in discussions about the existence and capital requirements of a potential insurance against the risk of financial crises at the aggregate level .
After revision:  We find that output losses arising from financial crises are strongly heterogeneous and that currency crises lead to smaller output losses than debt and banking crises. Extreme global financial crises episodes, occurring with a one percent probability every five years, lead to losses between 2.95\% and 4.54\% of world GDP .