We provide a novel benefit of Alternative Risk Transfer (ART) products with parametric or index triggers. When a … reinsurer has private information about his client's risk, outside reinsurers will price their reinsurance offer less …. This creates a hold-up problem that allows the incumbent to extract an information rent. An information-insensitive ART …

Reinsurance is a transaction insurance firms use to hedge risk. Existing studies have only investigated the demand for … reinsurance. Thus, we do not have direct evidence on whether the use of reinsurance creates value. Our study provides this … evidence. We find a positive relation between the use of reinsurance and value. This relation is nuanced. Our results suggest …

future. Hedging unknown catastrophic risks requires a blend of skills from the securities and the insurance industries. By …

We provide a novel benefit of Alternative Risk Transfer (ART) products with parametric or index triggers. When a … reinsurer has private information about his client's risk, outside reinsurers will price their reinsurance offer less …. This creates a hold-up problem that allows the incumbent to extract an information rent. An information-insensitive ART …

We provide a novel benefit of Alternative Risk Transfer (ART) products with parametric or index triggers. When a … reinsurer has private information about his client's risk, outside reinsurers will price their reinsurance offer less …. This creates a hold-up problem that allows the incumbent to extract an information rent. An information-insensitive ART …