Reinsurance in America: Regulatory Regimes and Markets

Robert E. Wright ()
Additional contact information
Robert E. Wright: American Institute for Economic Research

Chapter Chapter 3 in Role of Reinsurance in the World, 2021, pp 23-43 from Palgrave Macmillan

Abstract: Abstract Despite its large size and long history of insurance and insurable catastrophes and disasters, the United States of America has always lagged in the development of reinsurance companies, an industry still dominated by European and offshore domiciled reinsurers. The US experience shows that reinsurance is a necessary component of the insurance industry but the cost of reinsuring through domestically-domiciled reinsurers can be raised to prohibitive levels by inappropriate taxes and regulations, like the failure to treat reinsurers as a distinct national class in a fragmented, monoline regulatory system. High regulatory costs lead to the development of alternatives, including reinsuring overseas, through reciprocal agreements among direct writers, or via other substitutes, including market-based alternatives (ARTM) like catastrophe and death bonds and other insurance-linked securities (ILS).

Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palscp:978-3-030-74002-3_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9783030740023

DOI: 10.1007/978-3-030-74002-3_3

Access Statistics for this chapter

More chapters in Palgrave Studies in Economic History from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().