Does reinsurance need reinsurers?

Guillaume Plantin

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

JEL-codes: G22 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2003-04-01
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http://eprints.lse.ac.uk/24848/ Open access version. (application/pdf)

Related works:
Journal Article: Does Reinsurance Need Reinsurers? (2006)
Working Paper: Does Reinsurance Need Reinsurers? (2003)
Working Paper: Does Reinsurance Need Reinsurers?
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:24848

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