In our article we consider insurance as a means of allocating terrorism risk. Terrorism poses asignificant challenge …. In the insuranceindustry costly risk bearing can explain the supply of capacity risks. Corporate riskmanagement theory … theories we derive models for both thesupply of terrorism reinsurance and the demand for terrorism insurance.[...] …

This paper proposes validation using simulation based indirect estimation. It uses typical characteristic moments of …

Model risk as part of the operational risk is a serious problem for financial institutions.As the pricing of … derivatives as well as the computation of the marketor credit risk of an institution depend on statistical models the application … generating process is unknown in practice evaluatingthe model risk is a challenge. So far, definitions of model risk are …