Gatzert, Nadine; Schmeiser, Hato; Toplek, Denis - Institut für Versicherungswirtschaft <Sankt Gallen> - 2007
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...