A Dynamic Model of Extreme Risk Coverage : Resilience and Efficiency in the Global Reinsurance Market

A Dynamic Model of Extreme Risk Coverage : Resilience and Efficiency in the Global Reinsurance Market

This paper presents a dynamic model of the reinsurance market for catastrophe risks. The model is based on the classical capacity-constraint assumption. Reinsurers choose every year the quantity of risk they cover and the level of external capital...

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Bibliographic Details
Main Authors: Lemoyne de Forges, Sabine, Bibas, Ruben, Hallegatte, Stephane
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
ADVERSE SELECTION
AGENTS
AGGREGATE DEMAND
ALLOCATION
AMOUNT OF CAPITAL
AMOUNT OF RISK
ASSURANCE
BANK POLICY
BANKRUPTCY
BANKRUPTCY RISK
BUDGETING
BUSINESS OPPORTUNITIES
BUSINESS RISKS
BUY BACK
BUY BACKS
CAPACITY CONSTRAINT
CAPACITY CONSTRAINTS
CAPITAL ALLOCATION
CAPITAL COSTS
CAPITAL MARKET
CAPITAL MOVEMENTS
CAPITAL STRUCTURE
CAPITALIZATION
CAPITALIZATIONS
CASUALTY INSURANCE
CATASTROPHE BONDS
CATASTROPHE INSURANCE
CATASTROPHE REINSURANCE
CATASTROPHES
CATASTROPHIC RISKS
CEDANT
CEDANTS
CEDING INSURER
CLIMATE
CLIMATE CHANGE
CLIMATE EXTREMES
COINSURANCE
CORPORATE GOVERNANCE
COST OF CAPITAL
COST OF EQUITY
COST OF REINSURANCE
COVERAGE
DEBT
DEFAULT PROBABILITIES
DEFAULT PROBABILITY
DEFAULT RISK
DEMAND ELASTICITY
DEMAND FUNCTION
DISASTERS
DIVIDEND
DYNAMIC MODEL
EARNED PREMIUM
ECONOMIC GROWTH
ECONOMIC THEORY
EQUILIBRIUM PRICE
EQUITY CAPITAL
EXPOSURE
EXTREME EVENT
EXTREME EVENTS
FAIR
GLOBAL INSURANCE
GLOBAL MARKET
GLOBAL REINSURANCE
GLOBAL REINSURANCE MARKET
GUARANTY FUNDS
HOLDING
HURRICANE
HURRICANES
ILLIQUIDITY
INDEMNITY
INSTRUMENT
INSURANCE COMPANIES
INSURANCE INDUSTRY
INSURANCE MARKETS
INSURANCE REGULATION
INSURANCE SECTOR
INSURED LOSSES
INTERNATIONAL BANK
IPO
LIABILITY
LIABILITY SIDE
LIMITED LIABILITY
LONG-TERM COST
LOWER PRICES
MARKET BEHAVIOR
MARKET CAP
MARKET CAPITALIZATION
MARKET CONDITIONS
MARKET DATA
MARKET DEMAND
MARKET EFFICIENCY
MARKET EQUILIBRIUM
MARKET POWER
MARKET PRICE
MARKET PRICES
MARKET RISK
MARKET RISKS
MARKET SEGMENTATION
MARKET SHARE
MARKET SHARES
MARKET STRUCTURE
MARKET SUPPLY
MORAL HAZARD
NATURAL DISASTERS
OLIGOPOLISTIC MARKET
OLIGOPOLY
OUTPUT
OUTPUTS
PERFECT INFORMATION
POLICYHOLDERS
PORTFOLIO
PREMIUMS
PRICE INCREASES
PRICE INDEX
PROBABILITY OF DEFAULT
PROBABILITY OF DEFAULTS
PROGRAMS
PROPORTIONAL REINSURANCE
PUBLIC POLICY
RATE OF RETURN
RATES
REGULATOR
REGULATORY CONSTRAINT
REGULATORY REQUIREMENTS
REINSURANCE
REINSURANCE CAPACITY
REINSURANCE COMPANIES
REINSURANCE CONTRACTS
REINSURANCE MARKETS
REINSURERS
RETROCESSION
RETURN
RISK AVERSION
RISK EVALUATION
RISK MANAGEMENT
RISK MANAGEMENT TOOL
RISK OF DEFAULT
RISK PREMIUM
RISK SHARING
RISK-FREE INVESTMENTS
SCENARIOS
SECURITIES
SENSITIVITY ANALYSES
SHAREHOLDER
SHAREHOLDERS
SOLVENCY
STORM SURGE
SURPLUS
SUSTAINABLE DEVELOPMENT
SYSTEMIC RISK
TREATIES
TREATY
UNDERWRITING
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110922160728
http://hdl.handle.net/10986/3571

Internet

http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110922160728
http://hdl.handle.net/10986/3571

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