The property catastrophe reinsurance industry faces a major challenge. Since 1989, climatic volatility has produced unprecedented insured losses of $43 billion, $18 billion of which were from Hurricane Andrew alone. A surge of insurer defaults and dramatic changes in capacity and pricing have...

This paper, instead of focusing on agency cost, analyzes the role of risk-sharing under problems of enforceability (default) to explain the optimal determination of capital structure. Optimal contract structure presents equity and debt.

Insurance coverage against natural disasters remains low in many exposed areas. Limited insurance supply is commonly identified as a primary factor causing low insurance coverage. The French overseas departments provide an unusual combination of a well-developed natural disasters insurance...

This article aims to analyze some obvious sources of financing the innovative development. Mobilizing capital for financial support innovative development model is traditionally performed by the state and private investors. Institutions participating in financing the innovation are investment...

How should intermediaries influence the insurance demand decision? The answer must refer to the interdependence of economic determinants and legal duties. Intermediaries potentially guide demand decisions by delivering objective information and by considering individuals’ situation and...

The main goal of this paper is to develop a flood management model that takes into account the specifics of catastrophic risk management: highly mutually dependent losses, the lack of information, the need for long-term perspectives and explicit analyses of spatial and temporal heterogeneities...

Every day insurance companies face a number of risks arising from the insurance industry itself, as well as risks arising from insurance company operations. In this constant fight against risks insurance companies use different models and methods that help them better understand, have a more...

This paper uses a unique panel data set of an insurer's transactions with repeat customers. Consistent with the asymmetric learning hypothesis that repeated contracting enables sellers to obtain an informational advantage over their rivals, I find that the insurer makes higher profits in...

Most countries in the world are suffering from natural disasters caused by floods, earthquake, tornado and even tsunami. The developed countries have efficient techniques of covering such tragic events, but also the damages and losses are huge. A delicate problem appears when the catastrophes...

Every insurance market develops itself and sells insurance products using different strategies and distribution channels. The main role in selling insurance policies is granted to insurance brokers. In this paper we will analyze the struggling phenomenon of insurance brokerage industry in...