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 …