The optimal reinsurance contract is investigated from the perspective of an insurer who would like to minimise its risk … exposure under Solvency II. Under this regulatory framework, the insurer is exposed to the retained risk, reinsurance premium … and change in the risk margin requirement as a result of reinsurance. Depending on how the risk margin corresponding to …

convergence -- PART II: INSURANCE AND REINSURANCE -- 4 Primary Insurance/Reinsurance Contracts -- 4.1 Insurance concepts -- 4 … variance -- 1.3.2 Risk aversion -- 1.3.3 Risk transfer and the insurance mechanism -- 1.3.4 Diversification and risk pooling … -- 1.3.5 Hedging -- 1.3.6 Moral hazard, adverse selection and basis risk -- 1.3.7 Non-insurance transfers -- 1.4 Outline of …

Despite the existence of numerous quantitative approaches to the categorization of financial reinsurance contracts …, often insurance regulators may find the practical implementation of the task to be technically challenging. This research … paper develops a simple, affordable, and robust regulatory method that can help insurance regulators to categorize financial …