The purchase of index-linked alternative risk transfer instruments can lead to basis risk, if the insurer's loss is not fully dependent on the index. One way to reduce basis risk is to additionally purchase gap insurance, which fills the gap between an insurer's actual loss and the index-linked...

Index-linked catastrophic loss instruments represent an alternative to traditional reinsurance to hedge against catastrophic losses. The use of these instruments comes with benefits, such as a reduction of moral hazard and higher transparency. However, at the same time, it introduces basis risk...

Currently, the use and interpretation of t statistics and p-values is under scrutiny in various scientific fields for several reasons: p-hacking, data dredging, misinterpretation, multiple testing, or selective reporting, among others. To the best of our knowledge, this discussion has hardly...