...Heike Bockius; Nadine Gatzert Purpose The purpose of this article is to investigate the impact of counterparty risk on the basis risk of industry loss warranties as well as on reinsurance with and without collateral under different dependence structures. The authors additionally compare...

..., the underlying assumption of replicability of the claims is not without problems. Due to their simple and standardized structure and the dependence on a transparent industry loss index, ILWs are low‐barrier products, which can also be offered by hedge funds. In principle, traditional reinsurance contracts...

... four types of external catastrophe risk capital: reinsurance, industry loss warranties, catastrophe derivatives, and insurance‐linked securities. Finally, how the credit crisis has impacted alternative sources of catastrophe risk capital in different ways is considered. Design/methodology/approach...

... the high frequency of tornado and damaging hail in the continental USA, quantifying these risks will be an important advancement in pricing them for insurance/reinsurance purposes. In the absence of a realistic physical model, which would look at these perils on a cluster/outbreak basis, it is not possible...

...Ursina B. Meier; J. François Outreville Purpose This article aims to examine the existence of an underwriting cycle in property‐liability insurance for France, Germany and Switzerland (primary markets) and for the European reinsurance industry. It is also aimed to test how the two markets...

...Emilio C. Venezian; Krupa S. Viswanathan; Iana B. Jucá Purpose Using a game‐theoretic model of insurance markets, Powers and Shubik in 2001 derived a mathematical expression for the optimal number of reinsurers for a given number of primary insurers. Subsequently in 2005, Powers and Shubik showed...

... will be of value to those interested in the aviation industry and in the pricing of insurance and reinsurance. © Emerald Group Publishing Limited 2005 Aviation insurance Reinsurance Pricing The 9/11 loss therefore represents a marker of what is possible [3] . Hopefully, it is a marker...

...Lixin Zeng Purpose Demonstrates the feasibility of, and introduces a practical approach to enhancing, reinsurance efficiency using index‐based instruments. Design/methodology/approach First reviews the general mathematical framework of reinsurance optimization. Next, illustrates how index...