Plantin, Guillaume (2003) Does reinsurance need reinsurers? Discussion paper, 447. Financial Markets Group, London School of Economics and Political Science, London, UK.
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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)|
|Additional Information:||© 2003 The Author|
|Library of Congress subject classification:||H Social Sciences > HG Finance
H Social Sciences > HB Economic Theory
|Sets:||Research centres and groups > Financial Markets Group (FMG)
Collections > Economists Online
|Date Deposited:||13 Aug 2009 08:51|
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