Does Reinsurance Need Reinsurers?
AbstractThe reinsurance market is the secondary market for insurance risks. It has a very specific organization. Direct insurers rarely trade risks with each other. Rather, they cede part of their primary risks to specialized professional reinsurers who have no primary business. This article offers a model of equilibrium in reinsurance and capital markets in which professional reinsurers arise endogenously. Their role is to monitor primary insurers credibly, so that insurers can raise capital more easily. In equilibrium, the financial structure of primary insurers consists of a mix of reinsurance and outside capital. The comparative statics yield empirical predictions which are broadly in line with a number of stylized facts from the reinsurance market. Copyright The Journal of Risk and Insurance, 2006.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Carnegie Mellon University, Tepper School of Business in its series GSIA Working Papers with number 2005-E1.
Date of creation:
Date of revision:
Contact details of provider:
Postal: Tepper School of Business, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213-3890
Web page: http://www.tepper.cmu.edu/
Other versions of this item:
- NEP-ALL-2005-02-27 (All new papers)
- NEP-IAS-2005-02-27 (Insurance Economics)
- NEP-RMG-2005-02-27 (Risk Management)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Iman van Lelyveld & Franka Liedorp & Manuel Kampman, 2009.
"An Empirical assessment of reinsurance risk,"
DNB Working Papers
201, Netherlands Central Bank, Research Department.
- repec:hal:ciredw:halshs-00800460 is not listed on IDEAS
- John Lewis, 2010. "Reinsurers as financial intermediaries in the market for catastrophic risk," DNB Occasional Studies 802, Netherlands Central Bank, Research Department.
- Selim Mankaï & Aymen Belgacem, 2013.
"Interactions Between Risk-Taking, Capital, and Reinsurance for Property-Liability Insurance Firms,"
EconomiX Working Papers
2013-23, University of Paris West - Nanterre la Défense, EconomiX.
- Selim Mankaï & Aymen Belgacem, 2014. "Interactions Between Risk-Taking, Capital, and Reinsurance for Property- Liability Insurance Firms," Working Papers 2014-154, Department of Research, Ipag Business School.
- Lemoyne de Forges, Sabine & Bibas, Ruben & Hallegatte, Stephane, 2011.
"A dynamic model of extreme risk coverage : resilience and efficiency in the global reinsurance market,"
Policy Research Working Paper Series
5807, The World Bank.
- repec:hal:wpaper:halshs-00800460 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Steve Spear).
If references are entirely missing, you can add them using this form.