We analyze the relationship between insurers' liquidity creation and reinsurance demand. Early theoretical … to compensate clients at a low cost when unexpected claims happen. Unexpected claims can be protected by reinsurance …, which introduces a second trade-off between reinsurance demand and liquidity creation. This trade-off can be more important …

This paper analyzes the relation between insurers' liquidity creation and reinsurance demand. The empirical measure of … liquidity creation is less clear. Because liquidity creation is a risky activity, it may affect the demand for reinsurance. The … goal of this study is to analyze how liquidity creation affects demand for reinsurance …