with natural hazards, such as hurricanes and earthquakes. Risk management theory suggests protection by insurers and other … relatively little cat reinsurance against large events. We also find that premiums are high relative to expected losses …, especially after cat events. We then examine clinical evidence to understand why the theory fails. Specifically, we examine …

distributed through the insurance and reinsurance systems. However, because insurance companies tend to share relatively small …

transferring risk are being explored. The paper studies several recent transactions by USAA which use reinsurance capacity from … demonstrate that both features deviate from what theory would predict, yet are characteristic of many transactions, not simply …

supply of intermediary capital is perfectly elastic. We take the US catastrophe reinsurance market as an example, using … results suggest that the price of reinsurance generally exceeds fair' values, particularly in the aftermath of large events …

Two of the three elements of the ACA's "premium stabilization program," reinsurance and risk corridors, are set to … adjustment model itself are mathematically equivalent to a conventional actuarially fair reinsurance policy. Furthermore, closely … related modifications of the transfer formula or the risk adjustment model can improve on conventional reinsurance by figuring …

We explore two theories that have been advanced to explain the patterns in U.S. catastrophe reinsurance pricing. The … second holds that the supply of capital to the reinsurance industry is less than perfectly elastic, with the consequence that … prices are bid up whenever existing funds are depleted by catastrophe losses. Using detailed reinsurance contract data from …

primarily by insurance companies. Surprisingly, insurers use reinsurance to cover only a small fraction of these exposures, yet … limited risk sharing, relating them both to recent industry developments and financial theory. I then examine how financial …

risky investment, underwriting, reinsurance, and hedging; and ii) the allocation of risk across all of these opportunities …

This paper attempts to identify moral hazard in the traditional reinsurance market. We build a multi-period principle … agent model of the reinsurance transaction from which we derive predictions on premium design, monitoring, loss control and … insurer risk retention. We then use panel data on U.S. property liability reinsurance to test the model. The empirical results …