fully dependent on the index. One way to reduce basis risk is to additionally purchase gap insurance, which fills the gap …The purchase of index-linked alternative risk transfer instruments can lead to basis risk, if the insurer's loss is not … effectiveness of gap insurance in a shareholder value maximization framework under solvency constraints using differential evolution …

Inflation risk is of high relevance in non-life insurers' long-tail business and can have a major impact on claims … reserving. In this paper, we empirically study claims inflation with focus on automobile liability insurance based on a data set … provided by a large German non-life insurance company. The aim is to obtain empirical insight regarding the drivers of claims …