It has been said that insurance is the last of the financial services to accept radical change. Yet there has been a fundamental shift in the geographical location and in the organization of the reinsurance industry in the last six years. Global environmental risks are partly responsible for...

This paper presents a dynamic model of the reinsurance market for catastrophe risks. The model is based on the classical capacity-constraint assumption. Reinsurers choose every year the quantity of risk they cover and the level of external capital they raise to cover these risks. The model...