Plantin, Guillaume (2003) Does reinsurance need reinsurers? Financial Markets Group Discussion Papers (447). Financial Markets Group, The London School of Economics and Political Science, London, UK.
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Abstract
The reinsurance market is the secondary market for insurance risks. It has a very specific organization. Direct insurers do not trade risks with each other. They cede part of their primarily underwritten portfolios mainly to professional reinsurers with no direct business. This paper offers a model of equilibrium in reinsurance and capital markets where professional reinsurers arise naturally to monitor primary insurers. The interplay of financing and reinsurance decisions facing primary insurers is also explicitly modelled. The predictions are broadly in line with empirical evidence from the reinsurance market.
| Item Type: | Monograph (Discussion Paper) |
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| Official URL: | http://fmg.ac.uk |
| Additional Information: | © 2003 The Author |
| Divisions: | Financial Markets Group |
| Subjects: | H Social Sciences > HG Finance H Social Sciences > HB Economic Theory |
| JEL classification: | G - Financial Economics > G2 - Financial Institutions and Services > G22 - Insurance; Insurance Companies |
| Date Deposited: | 13 Aug 2009 08:51 |
| Last Modified: | 11 Dec 2024 18:35 |
| URI: | http://eprints.lse.ac.uk/id/eprint/24848 |
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