Froot, Kenneth A.; O'Connell, Paul G.J. - Financial Institutions Center, Wharton School of Business
detailed data from Guy Carpenter & Co., covering a large fraction of the catastrophe risks exchanged during 1970-94. Our …, that market power of reinsurers is not a complete explanation for such pricing, and that reinsurers' high costs of capital … supply of intermediary capital is perfectly elastic. We take the US catastrophe reinsurance market as an example, using …