Risk transfer is a key risk and capital management tool for insurance companies. Transferring risk between insurers is used to mitigate risk and manage capital re- quirements. We investigate risk transfer in the context of a network environment of insurers and consider capital costs and capital...

In 2003, Swiss Re introduced a mortality-based security designed to hedge excessive mortality changes for its life book of business. The concern was apparently brevity risk, i.e., the risk of premature death. The brevity risk due to a pandemic is similar to the property risk associated with...

We experimentally analyze consoumers' reaction to insurance default risk. Consistent with eralier studies, we find that insurance with default risk is extremely unattractive to most individuals. A considerable fraction of consumers completely refuse to accept any default risk; others ask for...

CAT bonds are of significant importance in the field of alternative risk transfer. Since the market of CAT bonds is not complete, the application of an appropriate pricing model is of high relevance. We apply different premium calculation models in order to compare them with regard to their...

CAT bonds are of significant importance in the field of alternative risk transfer. Since the market of CAT bonds is not complete, the application of an appropriate pricing model is of high relevance. We apply different premium calculation models in order to compare them with regard to their...

PurposeThe purpose of this paper is to propose an improved reinsurance pricing framework, which includes a crop yield forecasting model that integrates weather variables and crop production information from different geographically correlated regions using a new credibility estimator, and closed...

This paper looks for evidence of adverse selection in the relationship between primary insurers and reinsurers. We test the implications of a model in which informational asymmetry – and therefore, its negative consequences – decline over time. Our tests involve a data panel consisting of...

In this article we identify risk and return profiles of two types of investment guaranteesin unit-linked life insurance products: an interest rate guarantee and a lookbackguarantee. This is done by comparing guarantee costs and performance for thematurity payoff and by testing the investment...

Die seit nunmehr 20 Jahren geführte gesellschaftspolitische Debatte zum Konzept desShareholder-Value ist vor allem auch durch eine unklare Belegung und Abgrenzung derverwendeten betriebswirtschaftlichen Begriffe gekennzeichnet. Im vorliegenden Beitragwird in einem ersten Schritt eine formale...