model. Relative to securitization, reinsurance features lower adverse selection costs because reinsurers possess superior … reinsurance relative to securitization. In equilibrium, low risks are transferred via reinsurance, while intermediate and high …We provide a novel explanation for the low volume of securitization in catastrophe risk transfer using a signaling …

This research provides evidence on the relationship between catastrophe (Cat) bonds and reinsurance demand for insurers …. Cat bonds substitute for traditional reinsurance demand in the hard reinsurance market, but not in the soft market. When … decomposing the total reinsurance demand into internal and external reinsurance, Cat bonds have a significantly positive effect on …

. We propose the use of cat bonds as reinsurance tools as well as the Nowak–Romaniuk pricing scheme. The outage frequency …