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distributed through the insurance and reinsurance systems. However, because insurance companies tend to share relatively small …
Persistent link: https://www.econbiz.de/10012471496
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 …
Persistent link: https://www.econbiz.de/10012472807
This paper models a firm's rollover risk generated by conflict of interest between debt and equity holders. When the firm faces losses in rolling over its maturing debt, its equity holders are willing to absorb the losses only if the option value of keeping the firm alive justifies the cost of...
Persistent link: https://www.econbiz.de/10012462997
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 …
Persistent link: https://www.econbiz.de/10012470619
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 …
Persistent link: https://www.econbiz.de/10012471497
risky investment, underwriting, reinsurance, and hedging; and ii) the allocation of risk across all of these opportunities …
Persistent link: https://www.econbiz.de/10012468510
parameterize seventeen common structural models (e.g., expected utility, cumulative prospect theory). Subjects also make twelve …
Persistent link: https://www.econbiz.de/10012480452
The Centers for Medicare and Medicaid Services (CMS) has phased in the Hierarchical Condition Categories (HCC) risk adjustment model during 2004-2006 to more accurately estimate capitated payments to Medicare Advantage (MA) plans to reflect each beneficiary's health status. However, it is...
Persistent link: https://www.econbiz.de/10012453675
risk is associated with $500 higher premiums in 2023, up from $300 in 2018. Second, using the rapid rise in reinsurance …-through of reinsurance costs. Third, we project that if the reinsurance shock persists, growing disaster risk will lead climate …-exposed households to face $700 higher annual premiums by 2053. Our results highlight that prices in global reinsurance markets pass …
Persistent link: https://www.econbiz.de/10014576608
We ask why so few student loan borrowers enroll in Income Driven Repayment when the majority would benefit from doing so. To do so we run an incentivized laboratory experiment using a facsimile of the government's Student Loan Exit Counseling website. We test the role information complexity,...
Persistent link: https://www.econbiz.de/10012480909