Traditionally, insurance risks are borne in reinsurance markets. In 1990s, however, after the sequence of huge natural … disasters and huge insurance payments, the reinsurance markets reduced its capability to bear risks, especially those related to … reinsurance capacity by transferring insurance risks to the capital markets. The CAT (catastrophe) index futures is one of the …

supply of intermediary capital is perfectly elastic. We take the US catastrophe reinsurance market as an example, using … results suggest that the price of reinsurance generally exceeds fair' values, particularly in the aftermath of large events …

relatively little cat reinsurance against large events. We also find that premiums are high relative to expected losses … transactions that look to capital markets, rather than traditional reinsurance markets, for risk-bearing capacity. These provide …

relatively little cat reinsurance against large events. We also find that premiums are high relative to expected losses … transactions that look to capital markets, rather than traditional reinsurance markets, for risk-bearing capacity. These provide …

transferring risk are being explored. The paper studies several recent transactions by USAA which use reinsurance capacity from …