Risk transfer between primary insurance and reinsurance companies today takes place against a backdrop of major changes in international insurance and financial markets. One of these changes is the trend for the two markets to converge. This trend manifests itself in a growing number of product...

In recent years, industry loss warranties (ILWs) have become increasingly popular in the reinsurance market. The defining feature of ILW contracts is their dependence on an industry loss index. The use of an index reduces moral hazard and generally results in lower prices compared to...