The Florida State University College of Business Florida Catastrophic Storm Risk Management Center

Catastrophic Risk Finance and Insurance Information Portal


Welcome!

We've created this portal to facilitate the sharing of information and research related to catastrophe risk financing and insurance. Resources include peer-reviewed academic publications, working and industry papers, and more. For more information, see the About Us page.

Have a resource to add to our site? Email us at stormrisk@cob.fsu.edu

Browse - by Title (143 Records) Subscribe via RSS Subscribe to this
  • Full Record 2008 Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments
    Title 2008 Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments
    This report is based upon data provided by Citizens Property Insurance Corporation and the Florida Hurricane Catastrophe Fund. It is submitted by the Office of Insurance Regulation on behalf of the Financial Services Commission to comply with Section 627.3519, Florida Statutes.
    Published Date February 2008
    Organization Florida Office of Insurance Regulation
    Organization URL http://www.floir.org
    Link to full Paper http://www.stormrisk.org/admin/downloads/2008 Aggregate PML Report.pdf
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/212
  • Full Record 2008 Residual Market Update
    Title 2008 Residual Market Update
    This yearly update provided by Guy Carpenter covers the types of residual market assessments used by various coastal states, in addition to state-specific residual market information.
    Published Date 2008
    Organization Guy Carpenter
    Price No
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/53
  • Full Record 2009 Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments
    Title 2009 Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments
    This report is based upon data provided by Citizens Property Insurance Corporation and the Florida Hurricane Catastrophe Fund. It is submitted by the Office of Insurance Regulation on behalf of the Financial Services Commission to comply with Section 627.3519, Florida Statutes.
    Published Date February 2009
    Organization Florida Office of Insurance Regulation
    Organization URL http://www.floir.com
    Link to full Paper http://www.floir.com/siteDocuments/PMLRpt022009.pdf
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/149
  • Full Record 2010 Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments
    Title 2010 Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments
    This report is based upon data provided by Citizens Property Insurance Corporation and the Florida Hurricane Catastrophe Fund. It is submitted by the Office of Insurance Regulation on behalf of the Financial Services Commission to comply with Section 627.3519, Florida Statutes.
    Published Date February 2010
    Organization Florida Office of Insurance Regulation
    Organization URL http://www.floir.com
    Link to full Paper http://www.floir.com/siteDocuments/2010PMLReport.pdf
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/148
  • Full Record 2010 World Catastrophe Report
    Title 2010 World Catastrophe Report
    This annual report provides details about catastrophic events in 2010, including the Chile earthquake and Deepwater Horizon oil spill, as well as trends in (and the outlook for) the global reinsurance marketplace. The report also discusses updates in the catastrophe bond market, the impact of changing regulations (including Solvency II) and developments in catastrophe modeling.
    Published Date September 2010
    Organization Guy Carpenter
    Organization URL http://www.guycarp.com
    Link to full Paper http://www.guycarp.com/portal/extranet/insights/reportsPDF/2010/W…
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/210
  • Full Record 2011 Annual Global Climate and Catastrophe Report
    Title 2011 Annual Global Climate and Catastrophe Report
    This report aggregates and analyzes the natural disaster perils that occured worldwide during 2011. The impact of 253 separate events "generated a record total economic loss of $435 billion.
    Published Date January 2012
    Organization Aon Benfield
    Organization URL www.aon.com
    Link to full Paper http://thoughtleadership.aonbenfield.com/ThoughtLeadership/Docume…
    Summary/Abstract The report describes 2011 as "one of the most active on record for natural catastrophes." It produced $107 billion in total insured loss from natural catastrophes, the second highest on record. Only 2005 topped it with insured losses of $120 billion -- $90 billion of which resulted from the major hurricanes Katrina, Rita, and Wilma. Losses in 2011 were more than 280 percent higher than insured losses recorded in 2010.
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/223
  • Full Record 2011 Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments
    Title 2011 Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments
    This report is based upon data provided by Citizens Property Insurance Corporation and the Florida Hurricane Catastrophe Fund. It is submitted by the Office of Insurance Regulation on behalf of the Financial Services Commission to comply with Section 627.3519, Florida Statutes.
    Published Date February 2011
    Organization Florida Office of Insurance Regulation
    Organization URL http://www.floir.com
    Link to full Paper http://www.floir.com/siteDocuments/PML2011.pdf
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/147
  • Full Record A Marginal Cost Model of Reinsurance Attachment Points, Catastrophe Risk, and Government Intervention
    Title A Marginal Cost Model of Reinsurance Attachment Points, Catastrophe Risk, and Government Intervention
    This paper seeks to answer the following four questions regarding the market for catastrophe insurance. 1. What do insurers bring to the table if it is not capital and underwriting expertise? 2. Where are the optimal attachment and detachment points for reinsurance? 3. When should reinsurance be layered and when should it be proportional? 4. Should the different levels of government be involved in catastrophic risk financing and if so, how and at what level?
    Published Date December 2010
    Organization The Florida State University Florida Catastrophic Storm Risk Management Center
    Organization URL http://www.stormrisk.org
    Author Charles M. Nyce, Ph.D, M. Martin Boyer, Ph.D.
    Link to full Paper http://www.stormrisk.org/admin/downloads/Reinsurance Cat Risk & Government Intervention 12-16-10.pdf
    Summary/Abstract Financing of catastrophic risk is increasingly becoming a public policy issue at the state and federal level. The growth of residual markets in hazard prone areas increases the importance of finding the proper role and price for private market insurance. Our paper seeks to answer the following four questions regarding the market for catastrophe insurance. 1. What do insurers bring to the table if it is not capital and underwriting expertise? 2. Where are the optimal attachment and detachment points for reinsurance? 3. When should reinsurance be layered and when should it be proportional? 4. Should the different levels of government be involved in catastrophic risk financing and if so, how and at what level?
    Document Type White paper
    Permalinkhttp://catriskfinancing.org/detail/150
  • Full Record A Review of the Development of Residual Market Mechanisms in Florida
    Title A Review of the Development of Residual Market Mechanisms in Florida
    The purpose of this article is to review actions taken by the Florida Legislature related to the property insurance market in an effort to provide an understanding of how changing insurance market conditions, public policy objectives, and political factors can affect the development of residual market mechanisms, and how Florida’s current residual market mechanisms function.
    Published Date 2009
    Organization National Association of Insurance Commissioners
    Organization URL http://www.naic.org
    Author Cassandra Cole; David Macpherson; Patrick Maroney; Kathleen McCullough; James W. Newman, Jr.; Charles M. Nyce
    Link to full Paper http://www.naic.org/store_jir.htm
    Price Yes
    Summary/Abstract Florida’s property insurance residual market is particularly complex because of the number of mechanisms involved and the volume of related legislative activity since 1992. Because of the high exposure to hurricane risk, the potential deficit assessments levied by the various residual market mechanisms in the state have been an ongoing concern to legislators, policyholders, insurance companies, and the media. As such, the purpose of this article is to review actions taken by the Florida Legislature related to the property insurance market in an effort to provide an understanding of how changing insurance market conditions, public policy objectives, and political factors can affect the development of residual market mechanisms, and how Florida’s current residual market mechanisms function.
    Journal Title Journal of Insurance Regulation
    Page Numbers 56-79
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/166
  • Full Record Accuracy of Pricing Models for CAT Bonds- An Empirical Analysis
    Title Accuracy of Pricing Models for CAT Bonds- An Empirical Analysis
    The focus of this paper lies in the comparison of some selected pricing models in the field of premium calculation models.
    Author Galeotti, M.; Gurtler, M.; Rehan, C.
    Link to full Paper http://www.fiwi.tu-bs.de/forschung/working_paper/IF29.pdf
    Price No
    Page Numbers 1-28
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/30
  • Full Record Actuarial Versus Financial Pricing of Insurance
    Title Actuarial Versus Financial Pricing of Insurance
    This article discusses issues common to the pricing of both insurance and finance. These include increasing collaboration between insurance companies and banks, deregulation of various insurance and finance markets, integrated risk management, and the emergence of financial engineering as a new profession.
    Published Date 2000
    Author Embrechts, P.
    Link to full Paper http://www.emeraldinsight.com/Insight/viewContentItem.do?contentT…
    Price Yes
    Volume # 1
    Issue # 4
    Journal Title Journal of Risk Finance
    Page Numbers 17-26
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/18
  • Full Record Agricultural Finance Review
    Title Agricultural Finance Review
    Agricultural Finance Review (AFR) provides a forum for discussion of research, extension, and teaching issues in agricultural finance. This publication contains articles contributed by scholars in the field and refereed by peers.
    Organization Cornell University
    Organization URL http://afr.dyson.cornell.edu/
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/138
  • Full Record Alternative Risk Transfer: The Convergence of the Insurance and Capital Markets - Parts I, II, III
    Title Alternative Risk Transfer: The Convergence of the Insurance and Capital Markets - Parts I, II, III
    A three-part series on Alternative Risk Transfer, this series of papers provide a macro-level overview of the insurance-linked securities industry.
    Published Date July 2010
    Organization Insurance Studies Institute
    Organization URL http://www.insurancestudies.org/
    Author Kampa, Christopher
    Link to full Paper http://www.insurancestudies.org/category/completed-papers/
    Summary/Abstract This Part I of the I/C Convergence Series provides a macrolevel overview of the insurance-linked securitization industry. It covers the developing role of alternative risk transfer, which has led to the creation of new tools for insurers to manage risk -- risk that was previously thought to be uninsurable. As the need for insurance risk capacity has increased over the last 30 years, so has the need for financial instruments to manage and hedge risk. Part I also provides a history of how ILS began as an alternative to reinsurance, but has since evolved to become an integral part of many insurer hedging programs. Part I further compares and contrasts the differences between insurancelinked securities and reinsurance coverage, and it provides an overview of the various insurance-linked security structures along with an explanation of benefits provided to investors participating in this asset class. Part II of the I/C Convergence Series provides an overview of the non-life insurance-linked security sector. The first insurancelinked security issued was in the form of a catastrophe bond, which served as the foundation for all other insurance-linked securities to follow. Catastrophe bonds serve as a check against rising reinsurance costs and have weathered the effects of the global financial crisis quite well. After the asset-based market was established, derivative and other synthetic securities soon emerged. This opened up a wide avenue of risk management techniques and allowed for hedging of risks that were previously thought to be uninsurable. Part III of the I/C Convergence Series discusses developments in the market for life insurance-linked securities.
    Page Numbers 1-9
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/225
  • Full Record Annual Review for the Four Quarters, Q2 2009 to Q1 2010
    Title Annual Review for the Four Quarters, Q2 2009 to Q1 2010
    Published Date April 2010
    Organization Lane Financial LLC
    Organization URL http://www.lanefinancialllc.com
    Author Morton N. Lane, President; Roger Beckwith, Vice President
    Link to full Paper http://www.lanefinancialllc.com/images/stories/Publications/2010-04-16 Annual Review for the Four Quarters Q2 2009 to Q1 2010.pdf
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/202
  • Full Record Annual Review for the Four Quarters, Q2 2010 to Q1 2011
    Title Annual Review for the Four Quarters, Q2 2010 to Q1 2011
    Published Date March 2011
    Organization Lane Financial LLC
    Organization URL http://www.lanefinancialllc.com
    Link to full Paper http://www.lanefinancialllc.com/images/stories/Publications/2011-03-31 Annual Review for the Four Quarters Q2 2010 to Q1 2011.pdf
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/203
  • Full Record Assessing the Financial Vulnerability to Climate-Related Natural Hazards - World Bank Policy Research Working Paper 5232
    Title Assessing the Financial Vulnerability to Climate-Related Natural Hazards - World Bank Policy Research Working Paper 5232
    Based on the record of the past 30 years, this paper finds many developing countries, in particular small island states, to be highly financially vulnerable, and experiencing a resource gap (net disaster losses exceed all available financing sources) for events that occur with a probability of 2 percent or higher. This has three main implications. First, efforts to reduce risk need to be ramped-up to lessen the serious human and financial burdens. Second, contrary to the well-known Arrow-Lind theorem, there is a case for country risk aversion implying that disaster risks faced by some governments cannot be absorbed without major difficulty. Risk aversion entails the ex ante financing of losses and relief expenditure through calamity funds, regional insurance pools, or contingent credit arrangements. Third, financially vulnerable (and generally poor) countries are unlikely to be able to implement pre-disaster risk financing instruments themselves, and thus require technical and financial assistance from the donor community.
    Published Date March 2010
    Organization World Bank
    Organization URL http://www.worldbank.org
    Author Mechler, Reinhard; Hochrainer, Stefan; Pflug, Georg; Lotsch, Alexander; Williges, Keith
    Link to full Paper http://go.worldbank.org/VE8AUCUCR0
    Summary/Abstract National governments are key actors in managing the impacts of extreme weather events, yet many highly exposed developing countries -- faced with exhausted tax bases, high levels of indebtedness, and limited donor assistance -- have been unable to raise sufficient and timely capital to replace or repair damaged infrastructure and restore livelihoods after major disasters. Such financial vulnerability hampers development and exacerbates poverty. Based on the record of the past 30 years, this paper finds many developing countries, in particular small island states, to be highly financially vulnerable, and experiencing a resource gap (net disaster losses exceed all available financing sources) for events that occur with a probability of 2 percent or higher. This has three main implications. First, efforts to reduce risk need to be ramped-up to lessen the serious human and financial burdens. Second, contrary to the well-known Arrow-Lind theorem, there is a case for country risk aversion implying that disaster risks faced by some governments cannot be absorbed without major difficulty. Risk aversion entails the ex ante financing of losses and relief expenditure through calamity funds, regional insurance pools, or contingent credit arrangements. Third, financially vulnerable (and generally poor) countries are unlikely to be able to implement pre-disaster risk financing instruments themselves, and thus require technical and financial assistance from the donor community. The cost estimates of financial vulnerability -- based on today's climate -- inform the design of "climate insurance funds" to absorb high levels of sovereign risk and are found to be in the lower billions of dollars annually, which represents a baseline for the incremental costs arising from future climate change.
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/156
  • Full Record Astin Bulletin
    Title Astin Bulletin
    ASTIN Bulletin - The Journal of the IAA was founded in 1958 as a journal providing an outlet for actuarial studies in non-life insurance. In the late 1980's the journal extended its scope to encompass the study of financial risk in insurance (AFIR/ERM). In 2007, the journal was established as the journal of the International Actuarial Association (IAA) and encompasses all of the scientific sections of the IAA.
    Organization International Actuarial Association
    Organization URL http:///www.actuaries.org
    Link to full Paper http://www.actuaries.org/index.cfm?lang=EN&DSP=PUBLICATIONS&ACT=A…
    Price Yes
    Journal Title Astin Bulletin
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/220
  • Full Record British Actuarial Journal
    Title British Actuarial Journal
    Annals of Actuarial Science and British Actuarial Journal are free to members of the Institute and Faculty of Actuaries.
    Organization URL http://www.actuaries.org.uk/research-and-resources/pages/access-journals
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/141
  • Full Record CATalytic Insurance : The Case of Natural Disasters - World Bank Policy Research Working Paper 5377
    Title CATalytic Insurance : The Case of Natural Disasters - World Bank Policy Research Working Paper 5377
    Abstracting from risk aversion or hedging motives, this paper shows that catastrophe insurance may have a catalytic role on external finance.
    Published Date July 2010
    Organization World Bank
    Organization URL http://www.worldbank.org
    Author Cordella, Tito; Yeyati, Eduardo Levy
    Link to full Paper http://go.worldbank.org/1M9V3V2NL0
    Summary/Abstract Why should countries buy expensive catastrophe insurance? Abstracting from risk aversion or hedging motives, this paper shows that catastrophe insurance may have a catalytic role on external finance. Such effect is particularly strong in those middle-income countries that face financial constraints when hit by a shock or in its anticipation. Insurance makes defaults less appealing, relaxes countries' borrowing constraint, increases their creditworthiness, and enhances their access to capital markets. Catastrophe lending facilities providing "cheap" reconstruction funds in the aftermath of a natural disaster weaken but do not eliminate the demand for insurance.
    Page Numbers 28
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/154
  • Full Record Calibrating CAT Bonds for Mexican Earthquakes
    Title Calibrating CAT Bonds for Mexican Earthquakes
    This article examines the calibration of a real parametric catastrophe bond(CAT bond) for earthquakes sponsored by the Mexican government, which is of a high interest as it delivers several policy-relevant findings.
    Published Date 2010
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.com
    Author Wolfgang Karl Hardle; Brenda Lopez Cabrera
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2010.01355…
    Summary/Abstract This article examines the calibration of a real parametric catastrophe bond(CAT bond) for earthquakes sponsored by the Mexican government, which is of a high interest as it delivers several policy-relevant findings. The results demonstrate that a combination of reinsurance and CAT bond is optimal in the sense that it provides coverage for a lower cost and lower exposure at default than reinsurance itself. A hybrid CAT bond for earthquakes is also priced in order to reduce the basis and moral risk borne by the sponsor and to reflect the value of the loss by several variables.
    Volume # 77
    Issue # 3
    Journal Title The Journal of Risk and Insurance
    Page Numbers 625-650
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/164
  • Full Record Capital Market Instruments for Catastrophe Risk Financing
    Title Capital Market Instruments for Catastrophe Risk Financing
    This paper will give an introduction on the concept of capital markets, as a division of Alternative Risk Transfer, and its products, followed by a more detailed overview of existing literature on the most important capital market instruments available to the insurance industry to transfer and/or hedge catastrophe risks.
    Published Date 2007
    Author Bruggeman, V.
    Link to full Paper http://www.aria.org/meetings/2007papers/VIA - 1 - Bruggeman.pdf
    Price No
    Journal Title Presentation paper for the American Risk and Insurance Association
    Page Numbers 1-40
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/35
  • Full Record Capital Markets Reinsurance Inc.
    Title Capital Markets Reinsurance Inc.
    The purpose of this paper is to focus on the difference between Capital Markets Reinsurance Inc. and classical reinsurance, and compare the capital markets with traditional mechanisms.
    Published Date 2008
    Organization Lane Financial LLC
    Link to full Paper http://www.lanefinancialllc.com/
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/57
  • Full Record Capitalizing on Catastrophe: Short Selling Insurance Stocks Around Hurricanes Katrina and Rita
    Title Capitalizing on Catastrophe: Short Selling Insurance Stocks Around Hurricanes Katrina and Rita
    The authors develop several hypotheses regarding short-selling activity around Hurricanes Katrina and Rita.
    Published Date December 2008
    Organization American Risk and Insurance Association
    Organization URL http://aria.org
    Author Benjamin M. Blau; Robert A. Van Ness; Chip Wade
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2008.00293…
    Summary/Abstract We develop several hypotheses regarding short-selling activity around Hurricanes Katrina and Rita. We find that abnormal short selling does not increase until 2 trading days after the landfall of Katrina and that short-selling activity is much more significant around Rita. We find a substantial increase in short-selling activity in the trading days prior to the landfall of Rita and relatively less short-selling activity in the trading days after landfall. There is little evidence that suggests that traders short insurance stocks with more potential exposure in the Gulf region than other insurance stocks in the days before landfall.
    Volume # 75
    Issue # 4
    Journal Title The Journal of Risk and Insurance
    Page Numbers 967-996
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/178
  • Full Record Caribbean Catastrophe Risk Insurance Facility: A Case Study for Cooperation with the Private Sector
    Title Caribbean Catastrophe Risk Insurance Facility: A Case Study for Cooperation with the Private Sector
    Presentation created by the Latin America/Caribbean sector of AON Benfield that addresses the Caribbean Catastrophe Risk Insurance Facility's capability to provide post-loss liquidity, rapid payment insurance, and stability to the reinsurance market in the Caribbean.
    Published Date 2007
    Organization Benfield Group
    Organization URL http://www.aonbenfield.com
    Link to full Paper http://siteresources.worldbank.org/CMUDLP/Resources/Aiden_Pope.pdf
    Price Yes
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/71
  • Full Record Cat Bonds and Other Risk Linked Securities
    Title Cat Bonds and Other Risk Linked Securities
    This article reviews the current status of the market for catastrophic risk (CAT) bonds and other risk-linked securities.
    Published Date 2008
    Author Cummins, J.D.
    Link to full Paper http://www3.interscience.wiley.com/journal/119414350/abstract
    Price Yes
    Volume # 11
    Issue # 1
    Journal Title Risk Management and Insurance Review
    Page Numbers 23-47
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/27
  • Full Record Cat Bonds and Other Risk-linked Securities: State of the Market and Recent Developments
    Title Cat Bonds and Other Risk-linked Securities: State of the Market and Recent Developments
    This article reviews the current status of the market for catastrophic risk (CAT)bonds and other risk-linked securities.
    Published Date 2008
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author J. David Cummins
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6296.2008.00127…
    Summary/Abstract This article reviews the current status of the market for catastrophic risk (CAT) bonds and other risk-linked securities. CAT bonds and other risk-linked securities are innovative financial vehicles that have an important role to play in financing mega-catastrophes and other types of losses. The vehicles are especially important because they access capital markets directly, exponentially expanding risk-bearing capacity beyond the limited capital held by insurers and reinsurers. The CAT bond market has been growing steadily, with record amounts of risk capital raised in 2005, 2006, and 2007. CAT bond premia relative to expected losses covered by the bonds have declined by more than one-third since 2001. CAT bonds now appear to be priced competitively with conventional catastrophe reinsurance and comparably rated corporate bonds. CAT bonds have grown to the extent that they now play a major role in completing the market for catastrophic-risk finance and are spreading to other lines such as automobile insurance, life insurance, and annuities. CAT bonds are not expected to replace reinsurance but to complement the reinsurance market by providing additional risk-bearing capacity. Other innovative financing mechanisms such as risk swaps, industry loss warranties, and sidecars also are expected to continue to play an important role in financing catastrophic risk.
    Volume # 11
    Issue # 1
    Journal Title Risk Management and Insurance Review
    Page Numbers 23-47
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/167
  • Full Record Catastrophe Bonds and Reinsurance: The Competitive Effect of Information-Insensitive Triggers
    Title Catastrophe Bonds and Reinsurance: The Competitive Effect of Information-Insensitive Triggers
    The authors identify a new benefit of index or parametric triggers. Asymmetric information between reinsurers on an insurer’s risk affects competition in the reinsurance market: reinsurers are subject to adverse selection, since only high-risk insurers may find it optimal to change reinsurers.
    Published Date September 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Silke Finken; Christian Laux
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2009.01317…
    Summary/Abstract We identify a new benefit of index or parametric triggers. Asymmetric information between reinsurers on an insurer’s risk affects competition in the reinsurance market: reinsurers are subject to adverse selection, since only high-risk insurers may find it optimal to change reinsurers. The result is high reinsurance premiums and cross-subsidization of high-risk insurers by low-risk insurers. A contract with a parametric or index trigger (such as a catastrophe bond) is insensitive to information asymmetry and therefore alters the equilibrium in the reinsurance market. Provided that basis risk is not too high, the introduction of contracts with parametric or index triggers provides low-risk insurers with an alternative to reinsurance contracts, and therefore leads to less cross-subsidization in the reinsurance market.
    Volume # 76
    Issue # 3
    Journal Title The Journal of Risk and Insurance
    Page Numbers 579-605
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/175
  • Full Record Catastrophe Management in a Changing World: The Case of Hurricanes
    Title Catastrophe Management in a Changing World: The Case of Hurricanes
    This article features a presentation and discussant comments on hurricane and wind insurance organized by Richard A. Derrig for the American Risk and Insurance Association (ARIA) 2007 Annual Meeting in Quebec City, Quebec, Canada.
    Published Date 2008
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Richard A. Derrig; Jay S. Fishman; Martin Grace; Joan Schmit
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6296.2008.00140…
    Summary/Abstract This article features a presentation and discussant comments on hurricane and wind insurance organized by Richard A. Derrig for the American Risk and Insurance Association (ARIA) 2007 Annual Meeting in Quebec City, Quebec, Canada.
    Volume # 11
    Issue # 2
    Journal Title Risk Management and Insurance Review
    Page Numbers 269-280
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/183
  • Full Record Catastrophe Risk
    Title Catastrophe Risk
    This paper examines the recent emergence of initiatives involving the reinsurance industry and the capital markets to develop mechanisms to finance the losses arising from catastrophic events.
    Published Date 2003
    Author Bougen, P.D.
    Link to full Paper http://www.ingentaconnect.com/content/routledg/reso/2003/00000032…
    Price Yes
    Volume # 32
    Issue # 2
    Journal Title Economy and Society
    Page Numbers 253-274
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/7
  • Full Record Catastrophe Risk Bonds
    Title Catastrophe Risk Bonds
    This article examines the pricing of catastrophe risk bonds and presents techniques for pricing these bonds and discuss this theory in the context of equilibrium pricing and its relationship to the standard arbitragefree valuation framework.
    Published Date 2000
    Author Cox, S.; Pedersen, H.
    Link to full Paper http://www.soa.org/library/pdftest/journals/north-american-actuar…
    Price No
    Journal Title North America Actuarial Journal/ International Actuarial Association
    Page Numbers 56-82
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/24
  • Full Record Catastrophe Risk Financing in Developing Countries: Principles for Public Intervention
    Title Catastrophe Risk Financing in Developing Countries: Principles for Public Intervention
    Catastrophe Risk Financing in Developing Countries provides a detailed analysis of the imperfections and inefficiencies that impede the emergence of competitive catastrophe risk markets in developing countries.
    Published Date 2008
    Author Cummins, J.D.; Mahul, O.
    Link to full Paper http://gfdrr.org/docs/Track-II_Catrisk_financing_Overview_booklet.pdf
    Price No
    Journal Title The World Bank
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/40
  • Full Record Catastrophe Risk Financing in the United States and the European Union
    Title Catastrophe Risk Financing in the United States and the European Union
    This article examines and compares regulatory and other government policies in the United States and the EU generally and their approaches to the financing of catastrophe risk specifically.
    Published Date 2009
    Author Klein, R.W.; Wang, S.
    Link to full Paper http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1487229
    Price Yes
    Volume # 76
    Issue # 3
    Journal Title Journal of Risk and Insurance
    Page Numbers 607-637
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/23
  • Full Record Catastrophe Risk Pricing: An Empirical Analysis
    Title Catastrophe Risk Pricing: An Empirical Analysis
    This paper pulls together data from about 250 catastrophe bonds issued on the capital markets to investigate how catastrophe risks are priced.
    Published Date 2008
    Author Lane, M.; Mahul, O.
    Link to full Paper http://www-wds.worldbank.org/external/default/WDSContentServer/IW…
    Price No
    Journal Title Policy research working paper from the World Bank
    Page Numbers 1-26
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/39
  • Full Record Catastrophe Risk Securitization
    Title Catastrophe Risk Securitization
    This paper investigates the process of catastrophe risk securitization,i.e., the design and marketing of financial instruments that effectively transfer catastrophe risk, from a financial economics perspective.
    Published Date 2000
    Author Tynes, J.S.
    Link to full Paper http://web.ebscohost.com/ehost/detail?vid=1&hid=4&sid=1b29ab65-21…
    Price Yes
    Volume # 19
    Issue # 1
    Journal Title Journal of Insurance Regulation
    Page Numbers 3-25
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/34
  • Full Record Catastrophe Risk Securitization Insurer and Investor Perspectives
    Title Catastrophe Risk Securitization Insurer and Investor Perspectives
    This paper presents a survey of the various instruments used to securitize catastrophe risk, listing their advantages and disadvantages.
    Published Date 2006
    Author Meyers, G.; Kollar, J.
    Link to full Paper http://www.casact.org/dare/index.cfm?abstrID=3685&fuseaction=view
    Price No
    Journal Title Causality Actuarial Society Insurance Service Office
    Page Numbers 223-272
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/8
  • Full Record Catastrophe Securitization: An Event Study on the Corporate Demand for Risk Management
    Title Catastrophe Securitization: An Event Study on the Corporate Demand for Risk Management
    This paper examines the market response to the issuance of catastrophe securities by public companies.
    Author Bierley, B.E.; Hilliard, J.I.; Hoyt, R.E.
    Link to full Paper http://portal.business.colostate.edu/projects/ARIA/Shared Documents/5e_Bierley_Catastrophe Securitization.pdf
    Price No
    Journal Title Working Paper from the Terry College of Business, University of Georgia
    Page Numbers 1-46
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/28
  • Full Record Catastrophic Losses and Insurer Profitability: Evidence from 9/11
    Title Catastrophic Losses and Insurer Profitability: Evidence from 9/11
    Examines the effects of 9/11 on the insurance industry, hypothesizing a short-run claim effect, resulting from insufficient premium ex ante for catastrophic losses, and a long-run growth effect, resulting from ex post insurance supply reductions and risk updating.
    Published Date March 2008
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Xuanjuan Chen; Helen Doerpinghaus; Bing-Xuan Lin; Tong Yu
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2007.00247…
    Summary/Abstract We examine the effects of 9/11 on the insurance industry, hypothesizing a short-run claim effect, resulting from insufficient premium ex ante for catastrophic losses, and a long-run growth effect, resulting from ex post insurance supply reductions and risk updating. Following Yoon and Starks (1995) we use short- and long-run abnormal forecast revisions to measure both effects, analyzing them as a function of firm-specific characteristics.We find that firm type, loss estimates, reinsurance use, and tax position are important determinants of the short-run position. Firm type, loss estimates, financial strength, underwriting risk, and reinsurance are key determinants of the firm’s longrun position.
    Volume # 75
    Issue # 1
    Journal Title The Journal of Risk and Insurance
    Page Numbers 39-62
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/159
  • Full Record Charles Nyce
    First Name Charles
    Last Name Nyce
    Website http://www.stormrisk.org/index.cfm?page=18#nyce
    Organization Florida State University
    Department Florida Catastrophic Storm Risk Management Center
    Bio Dr. Charles M. Nyce is the primary author of CPCU 510 – Foundations of Risk Management and Insurance and a coordinating author on ARM 54 – Risk Assessment and INS 22 – Personal Insurance. He has taught enterprise risk management and corporate risk management classes at both the undergraduate and graduate levels at LaSalle University, University of Georgia, University of Hartford and The Wharton School of the University of Pennsylvania. He has authored numerous articles on a variety of risk management and insurance topics, including title insurance, IPOs, enterprise risk management, predictive analytics and natural hazards. He is also contributing author to two books dealing with insurance and natural hazards, Disasters by Design: a Reassessment of Natural Hazards in the United States and Paying the Price: The Status and Role of Insurance Against Natural Disasters in the United States.
    Permalinkhttp://catriskfinancing.org/detail/78
  • Full Record Closing the Gap: Public/Private Partnerships
    Title Closing the Gap: Public/Private Partnerships
    New forms of public-private partnerships can help countries absorb the financial consequences of catastrophic events and can make them more resilient. The reinsurance sector contributes to innovative solutions that close part of the gap between economic and insured losses. This publication explains the mechanisms and advantages of such solutions using real-life case studies.
    Published Date 2011
    Organization Swiss Re
    Organization URL http://www.swissre.com
    Link to full Paper http://media.swissre.com/documents/pub_closing_the_financial_gap_W1.pdf
    Page Numbers 1-40
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/187
  • Full Record Come Rain or Shine: Evidence on Flood Insurance Purchases in Florida
    Title Come Rain or Shine: Evidence on Flood Insurance Purchases in Florida
    This article provides a detailed analysis of the operation of the National Flood Insurance Program (NFIP) in Florida,which accounts for 40 percent of the NFIP portfolio.
    Published Date 2010
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Erwann O. Michel-Kerjan; Carolyn Kousky
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2009.01349…
    Summary/Abstract This article provides a detailed analysis of the operation of the National Flood Insurance Program (NFIP) in Florida,which accounts for 40 percent of the NFIP portfolio.We study the demand for flood insurance with a data set of more than 7.5 million NFIP policies-in-force (the largest ever studied) for the years 2000–2005, as well as all NFIP claims filed in Florida. We answer four questions: What are the characteristics of the buyers of flood insurance? What types of contracts (deductibles and coverage levels) are purchased? What are the determinants of claims payments? How are prices determined and how much does NFIP insurance cost?
    Volume # 77
    Issue # 2
    Journal Title The Journal of Risk and Insurance
    Page Numbers 369-397
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/182
  • Full Record Control and Out-of-Sample Validation of Dependent Risks
    Title Control and Out-of-Sample Validation of Dependent Risks
    This article introduces a framework to determine and allocate capital reserves to multiple dependent business lines, with or without overall reserve level constraints.
    Published Date September 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author URL Christian Gourieroux; Wei Liu
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2009.01309…
    Summary/Abstract This article introduces a framework to determine and allocate capital reserves to multiple dependent business lines, with or without overall reserve level constraints. The proposed methodology emphasizes the role of the loss function in the validation criterion and its conditional interpretation. Univariate and multivariate examples are discussed in detail.
    Volume # 76
    Issue # 3
    Journal Title The Journal of Risk and Insurance
    Page Numbers 683-707
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/180
  • Full Record Convergence of Insurance and Financial Markets: Hybrid and Securitized Risk-Transfer Solutions
    Title Convergence of Insurance and Financial Markets: Hybrid and Securitized Risk-Transfer Solutions
    This article provides a survey and overview of the hybrid and pure financial markets instruments and provides new information on the pricing and returns on contracts such as industry loss warranties and Cat bonds.
    Published Date September 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author J. David Cummins; Mary A. Weiss
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2009.01311…
    Summary/Abstract One of the most significant economic developments of the past decade has been the convergence of the financial services industry, particularly the capital markets and (re)insurance sectors. Convergence has been driven by the increase in the frequency and severity of catastrophic risk, market inefficiencies created by (re)insurance underwriting cycles, advances in computing and communications technologies, the emergence of enterprise risk management, and other factors. These developments have led to the development of hybrid insurance/financial instruments that blend elements of financial contracts with traditional reinsurance as well as new financial instruments patterned on asset-backed securities, futures, and options that provide direct access to capital markets. This article provides a survey and overview of the hybrid and pure financial markets instruments and provides new information on the pricing and returns on contracts such as industry loss warranties and Cat bonds.
    Volume # 76
    Issue # 3
    Journal Title The Journal of Risk and Insurance
    Page Numbers 493-545
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/179
  • Full Record Copulas: A Personal View
    Title Copulas: A Personal View
    In this article, the author reviews the early start of copula modeling, reviews the early start of this development, discusses some important current research, mainly from an applications point of view, and comments on potential future developments.
    Published Date September 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Paul Embrechts
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2009.01310…
    Summary/Abstract Copula modeling has taken the world of finance and insurance, and well beyond, by storm. Why is this? In this article, I review the early start of this development, discuss some important current research, mainly from an applications point of view, and comment on potential future developments. An alternative title of the article would be “Demystifying the copula craze.” The article also contains what I would like to call the copula must-reads.
    Volume # 76
    Issue # 3
    Journal Title The Journal of Risk and Insurance
    Page Numbers 639-650
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/168
  • Full Record Crop Insurance, Disaster Assistance, and the Role of the Federal Government in Providing Catastrophic Risk Protection
    Title Crop Insurance, Disaster Assistance, and the Role of the Federal Government in Providing Catastrophic Risk Protection
    This article focuses on the benefits of crop insurance. It is seen as preferable to disaster assistance because it was less costly and hence could be provided to more producers, was less likely to encourage moral hazard, and less likely to encourage producers to plant crops on marginal lands.
    Published Date 2002
    Author Glauber, J.; Collins, K.; Barry, B.
    Link to full Paper http://www.emeraldinsight.com/Insight/viewContentItem.do?contentT…
    Price Yes
    Volume # 62
    Issue # 2
    Journal Title Agricultural Finance Review
    Page Numbers 81-101
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/5
  • Full Record Debt Sustainability Under Catastrophic Risk: The Case for Government Budget Insurance
    Title Debt Sustainability Under Catastrophic Risk: The Case for Government Budget Insurance
    This article examines the vulnerability of Belize’s public finance to the occurrence of hurricanes and the potential impact of insurance instruments in reducing that vulnerability.
    Published Date 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Eduardo Borensztein; Eduardo Cavallo; Patricio Valenzuela
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6296.2009.01168…
    Summary/Abstract Natural disasters are an important source of vulnerability in the Caribbean region. Despite being one of the more disaster-prone areas of the world, it has the lowest levels of insurance coverage. This article examines the vulnerability of Belize’s public finance to the occurrence of hurricanes and the potential impact of insurance instruments in reducing that vulnerability. The article finds that catastrophic risk insurance significantly improves Belize’s debt sustainability. In addition, the methodology employed makes it possible to estimate the appropriate level of insurance, which for the case of Belize is a maximum coverage of US$120 million per year. International organizations can play a role in assisting countries to overcome distortions in insurance markets, as well as in helping to relax internal political resistance to the purchase of insurance policies.
    Volume # 12
    Issue # 2
    Journal Title Risk Management and Insurance Review
    Page Numbers 273-294
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/174
  • Full Record Disaster Risk Financing and Contingent Credit - A Dynamic Analysis
    Title Disaster Risk Financing and Contingent Credit - A Dynamic Analysis
    This paper aims to assist policy makers interested in establishing or strengthening financial strategies to increase the financial response capacity of developing country governments in the aftermath of natural disasters, while protecting their long-term fiscal balance.
    Published Date June 2011
    Organization World Bank
    Organization URL http://www.worldbank.org/
    Author Daniel Clarke, Olivier Mahul
    Link to full Paper http://www-wds.worldbank.org/external/default/WDSContentServer/WD…
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/196
  • Full Record Disaster Risk Financing: Reducing the Burden on Public Budgets
    Title Disaster Risk Financing: Reducing the Burden on Public Budgets
    White paper published by Swiss Re offers information on the benefits of public-private partnerships.
    Published Date 2008
    Organization Swiss Re
    Link to full Paper http://media.swissre.com/documents/disaster_risk_financing.pdf
    Price No
    Page Numbers 1-8
    Document Type White paper
    Permalinkhttp://catriskfinancing.org/detail/51
  • Full Record Financial Innovations for Catastrophic Risk: Cat Bonds and Beyond
    Title Financial Innovations for Catastrophic Risk: Cat Bonds and Beyond
    The Milken Institute's Financial Innovations Lab conference addresses ways to expand and share insurance risk in the area of catastrophe coverage.
    Published Date 2008
    Organization Milken Institute
    Organization URL http://www.milkeninstitute.org
    Link to full Paper http://www.milkeninstitute.org/pdf/FnclInnovsCatBondsApr08.pdf
    Price No
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/50
  • Full Record Financial Protection of the State Against Natural Disasters : A Primer - World Bank Policy Research Working Paper 5429
    Title Financial Protection of the State Against Natural Disasters : A Primer - World Bank Policy Research Working Paper 5429
    The paper explains why governments are usually better served by retaining most of their natural disaster risk while using risk transfer mechanisms to manage the excess volatility of their budgets or access immediate liquidity after a disaster.
    Published Date 2010/09/01
    Organization World Bank
    Organization URL http://www.worldbank.org
    Author Ghesquiere, Francis; Mahul, Olivier
    Link to full Paper http://go.worldbank.org/IOREG0PU40
    Price No
    Summary/Abstract This paper has been prepared for policy makers interested in establishing or strengthening financial strategies to increase the financial response capacity of governments of developing countries in the aftermath of natural disasters, while protecting their long-term fiscal balances. It analyzes various aspects of emergency financing, including the types of instruments available, their relative costs and disbursement speeds, and how these can be combined to provide cost-effective financing for the different phases that follow a disaster. The paper explains why governments are usually better served by retaining most of their natural disaster risk while using risk transfer mechanisms to manage the excess volatility of their budgets or access immediate liquidity after a disaster. Finally, it discusses innovative approaches to disaster risk financing and provides examples of strategies that developing countries have implemented in recent years.
    Page Numbers 24
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/155
  • Full Record Financing Catastrophe Insurance: A New Proposal
    Title Financing Catastrophe Insurance: A New Proposal
    In this paper the authors review two existing proposals for improving government interventions, in addition to advancing their own proposal that encourages having the government participate as the reinsurer of last resort.
    Author Jaffee, D.; Russell, T.
    Link to full Paper http://faculty.haas.berkeley.edu/jaffee/Papers/chap 4 jaffee russell.pdf
    Price No
    Page Numbers 1-9
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/31
  • Full Record Flood Hazards, Insurance Rates, and Amenities; Evidence from the Coastal Housing Market
    Title Flood Hazards, Insurance Rates, and Amenities; Evidence from the Coastal Housing Market
    This study employs the hedonic property price method to examine the effects of flood hazard on coastal property values.
    Published Date March 2008
    Organization American Risk and Insurance Association
    Organization URL http://aria.org
    Author Okmyung Bin; Jamie Brown Kruse; Craig E. Landry
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2007.00248…
    Summary/Abstract This study employs the hedonic property price method to examine the effects of flood hazard on coastal property values.We utilize Geographic Information System data on National Flood Insurance Program flood zones and residential property sales from Carteret County, North Carolina. Our results indicate that location within a flood zone lowers property value. Price differentials for flood risk and the capitalized value of flood insurance premiums are roughly equivalent—both exhibiting a nonlinear relationship in flood probability. Our results support the conclusion that flood zone designation and insurance premiums convey risk information to potential buyers in the coastal housing market.
    Volume # 75
    Issue # 1
    Journal Title The Journal of Risk and Insurance
    Page Numbers 63-82
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/172
  • Full Record Genuine Alpha, Perfect Security - Reaffirming ILS Rationales
    Title Genuine Alpha, Perfect Security - Reaffirming ILS Rationales
    This chapter surveys the ILS market, its history, and the claim that it provides genuine alpha.
    Published Date 2008
    Organization Lane Financial LLC
    Organization URL http://www.lanefinancialllc.com
    Link to full Paper http://www.lanefinancialllc.com/
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/58
  • Full Record Global Reinsurance Outlook 2011
    Title Global Reinsurance Outlook 2011
    The following pages provide important analysis of and insights into the (re)insurance industry, and aim to help Guy Carpenter’s clients navigate this challenging market environment. The report also serves as a useful real-time reference guide to the January 2011 renewal results. This paper combines the best collective thinking of our global analytical and broking teams located in fifty offices around the globe. It is through Guy Carpenter’s integrated, collaborative culture that we are able to deliver these differentiated insights and perspective to our clients. This year’s report contains three key themes: Renewal Rates, Excess Capital and Regulation.
    Published Date 2011
    Organization Guy Carpenter
    Organization URL http://www.guycarp.com
    Link to full Paper http://www.guycarp.com/portal/extranet/insights/reportsPDF/2010/J…
    Price No
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/201
  • Full Record Handling Weather Related Risks Through the Financial Markets: Considerations of Credit Risk, Basis Risk, and Hedging
    Title Handling Weather Related Risks Through the Financial Markets: Considerations of Credit Risk, Basis Risk, and Hedging
    Two newly engendered risks, basis risk (the risk created by the fact that the return from the financial derivative is a function of weather at a prespecified geographical location which may not be identical to the location of the firm) and credit risk (the risk that the counterparty to the derivative contract may not perform), are analyzed in this article.
    Published Date June 2007
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Linda L. Golden; MulongWang; Chuanhou Yang
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2007.00215…
    Summary/Abstract The profits of many businesses are strongly affected by weather related events, and insurance against weather related risks (acts of God) has been a traditional domain for transfer of (certain) of these risks. Recent innovations in the capital market have now provided financial instruments to transfer and hedge some of these risks. Unlike insurance solutions, however, using these financial derivative instruments creates a situation in which the return to the purchaser of the instrument is no longer perfectly correlated with the loss experienced. Such a mismatch createsnewrisks which must be examined and evaluated as part of ascertaining cost effective risk management plans. Two newly engendered risks, basis risk (the risk created by the fact that the return from the financial derivative is a function of weather at a prespecified geographical location which may not be identical to the location of the firm) and credit risk (the risk that the counterparty to the derivative contract may not perform), are analyzed in this article. Using custom tailored derivatives from the over the counter market can decrease basis risk, but increases credit risk. Using standardized exchange traded derivatives decreases credit risk but increases basis risk. Here also the effectiveness of using hedging methods involving forwards and futures having linear payoffs (linear hedging) and methods using derivatives having nonlinear payoffs such as those involving options (nonlinear hedging) for the purpose of hedging basis risk are examined jointly with credit risk.
    Volume # 74
    Issue # 2
    Journal Title The Journal of Risk and Insurance
    Page Numbers 319-346
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/176
  • Full Record Hazard & Risk Science Review 2004
    Title Hazard & Risk Science Review 2004
    The Hazard & Risk Science Review provides an annual digest of the latest developments in research, disaster related issues and their potential implications as they relate to the insurance and reinsurance market, focusing on the four major areas of hazard; atmospheric, geological, hydrological and climate change.
    Published Date 2004
    Organization Aon Benfield and PartnerRe
    Organization URL http://www.aon.com/reinsurance/default.jsp
    Link to full Paper http://www.abuhrc.org/Publications/Hazard Risk Science Review 2004.pdf
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/215
  • Full Record Hazard & Risk Science Review 2006
    Title Hazard & Risk Science Review 2006
    The 2006 Review, commissioned once again from the Benfield UCL Hazard Research Centre, provides a synopsis of over 75 scientific papers published during the past 12 months. It is focused on the four major areas of hazards that are relevant to catastrophe insurance and reinsurance - atmospheric, geological, hydrological and climate change.
    Published Date 2006
    Organization Aon Benfield and PartnerRe
    Author URL http://www.aonbenfield.com
    Link to full Paper http://www.abuhrc.org/Publications/Hazard Risk Science Review 2006.pdf
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/218
  • Full Record Hazard and Risk Science Review
    Title Hazard and Risk Science Review
    The Hazard & Risk Science Review provides an annual digest of the latest developments in research, disaster related issues and their potential implications as they relate to the insurance and reinsurance market, focusing on the four major areas of hazard; atmospheric, geological, hydrological and climate change.
    Organization URL http://www.abuhrc.org/rp/publications/Pages/hrsr.aspx
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/139
  • Full Record Hazard and Risk Science Review 2004
    Title Hazard and Risk Science Review 2004
    Extreme events – in particular meteorological – are becoming more and more commonplace. We believe the insurance market can greatly benefit from information about the latest developments in research, disaster-related issues and their potential implications. The Review provides a digest of these developments, as they relate to the insurance and reinsurance market, focusing on the four major areas of hazard; atmospheric, geological, hydrological and climate change.
    Published Date 2004
    Organization Aon Benfield and PartnerRe
    Organization URL http://www.aonbenfield.com
    Link to full Paper http://www.abuhrc.org/Publications/Hazard Risk Science Review 2004.pdf
    Price No
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/217
  • Full Record Hazard and Risk Science Review 2005
    Title Hazard and Risk Science Review 2005
    This 2005 issue of the Review, commissioned from UCL’s Benfield Hazard Research Centre, provides a digest of over 60 scientific papers published during the last 12 months of relevance to the insurance market, focusing on the four major areas of hazard – atmospheric, geological, hydrological and climate change.
    Published Date 2005
    Organization Aon Benfield and PartnerRe
    Organization URL http://www.aonbenfield.com
    Link to full Paper http://www.abuhrc.org/Publications/Hazard Risk Science Review 2005.pdf
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/216
  • Full Record Hazard and Risk Science Review 2007
    Title Hazard and Risk Science Review 2007
    The Hazard & Risk Science Review draws attention to new and pertinent research results.
    Published Date 2007
    Organization Hazard Research Centre
    Link to full Paper http://www.abuhrc.org/Publications/Hazard Risk Science Review 2007.pdf
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/54
  • Full Record Hazard and Risk Science Review 2008
    Title Hazard and Risk Science Review 2008
    The 2008 Review references the hazard and risk science papers most relevant to the re/insurance industry, with input provided by natural catastrophe experts at the Benfield and PartnerRe.
    Published Date 2008
    Organization Hazard Research Centre
    Link to full Paper http://www.abuhrc.org/Publications/Hazard Risk Science Review 2008.pdf
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/55
  • Full Record Hazard and Risk Science Review 2009
    Title Hazard and Risk Science Review 2009
    The Hazard & Risk Review assists in bridging the gap between reinsurance and academia by providing a synopsis of key research papers deemed most relevant to the industry.
    Published Date 2009
    Organization Hazard Research Centre
    Link to full Paper http://www.aon.com/attachments/reinsurance/200909_abuhrc_hazard_r…
    Price No
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/49
  • Full Record How Do Governments Respond After Catastrophes? Natural-Disaster Shocks and the Fiscal Stance - World Bank Policy Research Working Paper 5564
    Title How Do Governments Respond After Catastrophes? Natural-Disaster Shocks and the Fiscal Stance - World Bank Policy Research Working Paper 5564
    This paper uses a panel vector autoregressive model to systematically estimate the impact of geological, climatic, and other types of natural disasters on government expenditures and revenues using annual data for high and middle-income countries over 1975-2008. The authors find that, on average budget, deficits increase only after climatic disasters, but for lower-middle-income countries, the increase in deficits is widespread across all events.
    Published Date February 2011
    Organization World Bank
    Organization URL http://www.worldbank.org
    Author Melecky, Martin; Raddatz, Claudio
    Link to full Paper http://go.worldbank.org/4BQX0ETUD0
    Price No
    Summary/Abstract Natural disasters could constitute a major shock to public finances and debt sustainability because of their impact on output and the need for reconstruction and relief expenses. This paper uses a panel vector autoregressive model to systematically estimate the impact of geological, climatic, and other types of natural disasters on government expenditures and revenues using annual data for high and middle-income countries over 1975-2008. The authors find that, on average budget, deficits increase only after climatic disasters, but for lower-middle-income countries, the increase in deficits is widespread across all events. Disasters do not lead to larger deficit increases or larger output declines in countries with higher initial government debt. Countries with higher financial development suffer smaller real consequences from disasters, but deficits expand further in these countries. Disasters in countries with high insurance penetration also have smaller real consequences but do not result in deficit expansions. From an ex-post perspective, the availability of insurance offers the best mitigation approach against real and fiscal consequences of disasters.
    Document Type White paper
    Permalinkhttp://catriskfinancing.org/detail/152
  • Full Record Hurricane Insurance in Florida
    Title Hurricane Insurance in Florida
    This paper studies the evolution of hurricane insurance in Florida over the last decades.
    Published Date January 2009
    Author von Ungern-Sternberg, T.
    Link to full Paper http://www.hec.unil.ch/deep/textes/09.01.pdf
    Price No
    Journal Title Working paper from the Univeristy of Lausanne
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/36
  • Full Record Hybrid Cat Bonds
    Title Hybrid Cat Bonds
    Insurance-linked securities, such as catastrophe (cat) bonds, have been issued to complete the international risk transfer process, but their development is disappointing so far. This article argues that downside risk aversion and ambiguity aversion explain their limited success.
    Published Date September 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Pauline Barrieu; Henri Louberg
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2009.01312.x/full
    Summary/Abstract Natural catastrophes attract regularly the media attention and have become a source of public concern. From a financial viewpoint, they represent idiosyncratic risks, diversifiable at the world level. But for various reasons, reinsurance markets are unable to cope with this risk completely. Insurance-linked securities, such as catastrophe (cat) bonds, have been issued to complete the international risk transfer process, but their development is disappointing so far. This article argues that downside risk aversion and ambiguity aversion explain their limited success. Hybrid cat bonds, combining the transfer of cat risk with protection against a stock market crash, are proposed to complete the market. The article shows that replacing simple cat bonds with hybrid cat bonds would lead to an increase in market volume.
    Volume # Vol. 76
    Issue # 3
    Journal Title The Journal of Risk and Insurance
    Page Numbers 547-578
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/158
  • Full Record ILS Comes of Age Structured Products on the Horizon
    Title ILS Comes of Age Structured Products on the Horizon
    This brief focuses of the results for the testing of catastrophe bonds within the capital market.
    Published Date 2008
    Organization Guy Carpenter
    Link to full Paper http://www.guycarp.com/portal/extranet/insights/briefingsPDF/2008…
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/42
  • Full Record Impact of Storms on the Florida Property Insurance Market, 1990-2010
    Title Impact of Storms on the Florida Property Insurance Market, 1990-2010
    This special report by Demotech, Inc., researched the tropical cyclones that impacted Florida over the past twenty years and how these cyclones influenced the insurance industry and the success of Florida insurance companies.
    Published Date Jan. 4, 2012
    Organization Demotech
    Organization URL http://www.demotech.com
    Link to full Paper http://www.demotech.com/pdfs/papers/fl_cat_paper_20111229.pdf
    Summary/Abstract This special report by Demotech, Inc., researched the tropical cyclones that impacted Florida over the past twenty years and how these cyclones influenced the insurance industry and the success of Florida insurance companies.
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/221
  • Full Record Increased Hurricane Risk and Insurance Market Responses
    Title Increased Hurricane Risk and Insurance Market Responses
    This article examines recent trends in the affected homeowners insurance markets and discusses how these markets are likely to change in response to the reassessment of hurricane risk.
    Published Date 2006
    Author Grace, M.F.; Klein,R.W.; Liu,Z.
    Link to full Paper Cut and paste link - http://web.ebscohost.com/ehost/detail?vid=1&hid=4&sid=557746d8-f3…
    Price Yes
    Volume # 24
    Issue # 2
    Journal Title Journal of Insurance Regulation
    Page Numbers 2-32
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/17
  • Full Record Industry Loss Warranties
    Title Industry Loss Warranties
    This paper, offered by the Benfield Group, covers the information basics of Industry Loss Warranties (ILWs).
    Published Date 2008
    Organization Benfield Group
    Link to full Paper http://www.aon.com/attachments/reinsurance/200809_b_research_mont…
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/41
  • Full Record Innovations in Managing Catastrophe Risk
    Title Innovations in Managing Catastrophe Risk
    This article discusses the changes that occurred in the property-liability insurance market.
    Published Date 1997
    Author Doherty, N.
    Link to full Paper http://www.emeraldinsight.com/bibliographic_databases.htm?id=1266…
    Price Yes
    Volume # 64
    Issue # 4
    Journal Title Journal of Risk and Insurance
    Page Numbers 713-718
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/19
  • Full Record Insurance Linked Securities 2008
    Title Insurance Linked Securities 2008
    In this 2008 edition, we review: • Insurance-linked securities (ILS) market performance and growth • Our Cat Bond Indices providing insight into ILS market returns • The surging popularity of indemnity structures • Investor demand for insurance-linked securities • The contingent capital market • The market’s latest innovations in futures and derivative tools
    Published Date 2009
    Organization AON Benfield
    Organization URL http://www.aonbenfield.com
    Link to full Paper http://thoughtleadership.aonbenfield.com/ThoughtLeadership/Docume…
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/200
  • Full Record Insurance Linked Securities 2010
    Title Insurance Linked Securities 2010
    Over the year ending June 30, 2010, the insurance-linked securities (ILS)market has once again demonstrated its importance as a source of risk transfer capacity. The market has grown and evolved in response to a changing global economic environment, maintaining its relevance to bothsponsors and investors. Our analysis that follows elaborates on these market characteristics and offers a positive outlook for the future.
    Published Date 2010
    Organization AON Benfield
    Organization URL http://www.aon.com
    Link to full Paper http://thoughtleadership.aonbenfield.com/ThoughtLeadership/Docume…
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/199
  • Full Record Insurance Linked Securities 2011
    Title Insurance Linked Securities 2011
    For the 12 months ended June 30, 2011, the Insurance-Linked Securities (ILS) market again demonstrated its consistent strength and provided sponsors with an attractive alternative to complement their traditional reinsurance purchases. Two stories emerged in the last 12 months: • A healthy and growing market in the first nine months capped by a very active issuance calendar in the fourth quarter of 2010 and the first quarter of 2011, and • A market interrupted by model changes and natural catastrophes in the second quarter of 2011.
    Organization AON Benfield
    Organization URL http://www.aon.com
    Link to full Paper http://thoughtleadership.aonbenfield.com/ThoughtLeadership/Docume…
    Price No
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/198
  • Full Record Insuring Against Catastrophes
    Title Insuring Against Catastrophes
    This paper focuses on the role that information about potential adverse events plays in both the supply and demand for insurance where there is considerable uncertainty regarding the likelihood of the event occurring and the resulting consequences.
    Published Date 2009
    Author Kunreuther, H.; Pauly, M.
    Link to full Paper http://opim.wharton.upenn.edu/risk/library/WP20090413_HK,MP_KuU.pdf
    Price No
    Journal Title Working paper from The Wharton School, University of Pennsylvania
    Page Numbers 1-37
    Permalinkhttp://catriskfinancing.org/detail/38
  • Full Record It's Still Wind that Blows Everyone Some Good
    Title It's Still Wind that Blows Everyone Some Good
    This paper reports on the effects and implications are on the loss-free year of 2009 on the reinsurance and credit market.
    Published Date 2009
    Organization Lane Financial LLC
    Link to full Paper http://www.lanefinancialllc.com/
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/59
  • Full Record Journal of Banking and Finance
    Title Journal of Banking and Finance
    The aim of the Journal of Banking and Finance is to provide an outlet for the increasing flow of scholarly research concerning financial institutions and the money and capital markets within which they function.
    Organization URL http://www.sciencedirect.com/science/journal/03784266
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/143
  • Full Record Journal of Finance
    Title Journal of Finance
    The Journal of Finance publishes leading research across all the major fields of financial research. It is one of the most widely cited academic journal on finance and one of the most widely cited journals in all of economics as well.
    Organization URL http://www.afajof.org/
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/142
  • Full Record Journal of Financial Economics
    Title Journal of Financial Economics
    Organization URL http://jfe.rochester.edu/
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/144
  • Full Record Journal of Insurance Issues
    Title Journal of Insurance Issues
    The Journal of Insurance Issues is the official publication of the Western Risk and Insurance Association. The JII publishes original and not-previously-published research on subjects associated with Risk Management, Insurance, Actuarial Science, Employee Benefits, Financial Planning, Estate Planning, and other risk-related topics.
    Organization URL http://www.wria.org/journal.html
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/146
  • Full Record Journal of Insurance Regulation
    Title Journal of Insurance Regulation
    The JIR is a forum for opinion and discussion of major regulatory and public policy issues in insurance. It strives to make state insurance departments more aware of the cutting-edge, high-quality research occurring in the regulation arena.
    Organization URL http://www.naic.org/store_jir.htm
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/140
  • Full Record Journal of Risk Finance
    Title Journal of Risk Finance
    The journal provides a rigorous forum for the publication of theory and empirical work, by both academic and industry experts, related to the financing of risk in its various forms. With a long-standing focus on issues of market convergence, the journal is particularly committed to research addressing (1) the creation of innovative products straddling the boundaries of financial engineering, traditional insurance/reinsurance, and alternative risk transfer, and (2) the development of risk-financing mechanisms in emerging economies throughout the world.
    Organization Emerald
    Organization URL http://www.emeraldinsight.com/products/journals/journals.htm?id=jrf
    Link to full Paper http://www.emeraldinsight.com/products/journals/journals.htm?id=jrf
    Journal Title Journal of Risk Finance
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/213
  • Full Record Journal of Risk and Insurance
    Title Journal of Risk and Insurance
    The Journal of Risk and Insurance is the flagship journal for the American Risk and Insurance Association.
    Organization American Risk and Insurance Association
    Organization URL http://journalofriskandinsurance.org/about.aspx
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/137
  • Full Record Lane Financial Insurance Return Index Quarterly Market Performance Report - Q3 2008
    Title Lane Financial Insurance Return Index Quarterly Market Performance Report - Q3 2008
    This report focuses on the changes and outcomes for the third quarter of the 2008 year for the Lane Financial Insurance Return Index.
    Published Date 2008
    Organization Lane Financial LLC
    Link to full Paper http://www.lanefinancialllc.com/
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/60
  • Full Record Long-Term Property Insurance
    Title Long-Term Property Insurance
    This article proposes long-term insurance (LTI) as an alternative to the standard annual property insurance policy.
    Published Date 2010
    Organization National Association of Insurance Commissioners
    Organization URL http://www.naic.org
    Author Dwight Jaffee; Howard Kunreuther; Erwann Michel-Kerjan
    Link to full Paper http://www.naic.org/store_jir.htm
    Price Yes
    Summary/Abstract This article proposes long-term insurance (LTI) as an alternative to the standard annual property insurance policy. LTI offers significant benefits to many stakeholders by reducing insurers’ administrative costs, lowering search costs, providing stability to consumers, and incentivizing property owners to invest in risk-reducing measures. A simple two-period model illustrates situations that would make a long-term contract attractive to both insurers and consumers under competitive market conditions. Recognizing potential difficulties in modifying regulatory systems in 50 states, and using the history of the development of longterm mortgages in the United States as a benchmark, we discuss the applicability of long-term contracts for reforming the federally run U.S. National Flood Insurance Program (NFIP). Multi-year flood insurance policies would encourage investments in cost-effective mitigation measures and provide stability to the program, in view of the large number of homeowners who cancel their annual policies after just two or three years. The article concludes with issues and questions that need to be addressed for multi-year property insurance policies to be considered by private sector firms.
    Journal Title Journal of Insurance Regulation
    Page Numbers 167-187
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/170
  • Full Record Looking Forward; Looking Back
    Title Looking Forward; Looking Back
    The purpose of this paper is to conduct an in-depth examination of the historical record of ILS investing and to reflect on the implications for future risk and returns.
    Published Date 2009
    Organization Lane Financial LLC
    Link to full Paper http://www.lanefinancialllc.com/
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/56
  • Full Record Lorilee Medders
    First Name Lorilee
    Last Name Medders
    Website http://www.stormrisk.org
    Organization Florida State University
    Department Florida Catastrophic Storm Risk Management Center
    Bio Dr. Medders' areas of research interest include business risk management decision making models, global risk issues, catastrophe risk financing and reputational risk management. She has presented numerous papers on these subjects to both academic and industry groups. Her consulting clients have included Fortune 500 companies as well as smaller companies and nonprofit organizations. Currently, Dr. Schneider is especially involved in catastrophe risk financing programs for several companies within the utilities industry.
    Permalinkhttp://catriskfinancing.org/detail/79
  • Full Record Managing the Escalating Risks of Natural Catastrophes in the United States
    Title Managing the Escalating Risks of Natural Catastrophes in the United States
    The report sets out nine key principles for addressing the issue of rising losses from extreme weather events and other natural catastrophes in the US. The report was produced in consultation with a panel of experts from the Lloyds' market. It suggests that the first step in protecting US property owners from natural catastrophe losses is ensuring that there is a healthy, private insurance market and that government intervention is kept to a minimum. It also highlights the need for greater cooperation between government, insurers and policyholders in the U.S. to ensure that a greater emphasis is placed on managing and mitigating natural catastrophe risk.
    Published Date September 2011
    Organization Lloyd's
    Organization URL http://www.Lloyds.com
    Link to full Paper http://www.lloyds.com/The-Market/Tools-and-Resources/Research/Exp…
    Summary/Abstract This paper suggests that the first step in protecting US property owners from natural catastrophe losses is ensuring that there is a healthy, private insurance market and that government intervention is kept to a minimum. It also highlights the need for greater cooperation between government, insurers and policyholders in the U.S. to ensure that a greater emphasis is placed on managing and mitigating natural catastrophe risk.
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/214
  • Full Record Measuring Economic Capital: Value at Risk, Expected Tail Loss and Copula Approach
    Title Measuring Economic Capital: Value at Risk, Expected Tail Loss and Copula Approach
    In this paper, the authors explore the investigation dependence structure between variables for assessing the economic capital measured by Value at Risk and Expected Tail Loss.
    Published Date 2009
    Author Shim, J.; Lee, S.H.; MacMinn, R.
    Link to full Paper http://69.175.2.130/~finman/Reno/Papers/EconomicCapitalCopulaApproach.pdf
    Price Yes
    Journal Title Working paper from Illinois Wesleyan University
    Page Numbers 1-41
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/33
  • Full Record Modeling and Management of Nonlinear Dependencies-Copulas in Dynamic Financial Analysis
    Title Modeling and Management of Nonlinear Dependencies-Copulas in Dynamic Financial Analysis
    Studies the influence of nonlinear dependencies on a non-life insurer’s risk and return profile. To achieve this, we integrate several copula models in a dynamic financial analysis framework and conduct numerical tests.We also test risk management strategies in response to adverse outcomes.
    Published Date September 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Martin Eling; Denis Toplek
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2009.01318…
    Summary/Abstract We study the influence of nonlinear dependencies on a non-life insurer’s risk and return profile. To achieve this, we integrate several copula models in a dynamic financial analysis framework and conduct numerical tests.We also test risk management strategies in response to adverse outcomes. Nonlinear dependencies have a crucial influence on the insurer’s risk profile that can hardly be affected by the analyzed management strategies. We find large differences in risk assessment for the ruin probability and for the expected policyholder deficit. This has important implications for insurers, regulators, and rating agencies that use these measures as a foundation for internal risk models, capital standards, and ratings.
    Volume # 76
    Issue # 3
    Journal Title The Journal of Risk and Insurance
    Page Numbers 651-681
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/161
  • Full Record Natural Catastrophe Risk Insurance Mechanisms for Asia and the Pacific: Main report
    Title Natural Catastrophe Risk Insurance Mechanisms for Asia and the Pacific: Main report
    This summary reviews the key issues and discussions that occurred during the Asian Development Bank (ADB) Conference on Natural Catastrophe Risk Insurance Mechanisms for Asia and the Pacific held in Tokyo on 4-5 November 2008.
    Published Date 2008
    Organization Asian Development Bank (ADB)
    Link to full Paper http://www.adb.org/Documents/Reports/Natural-Catastrophe-Risk-Insurance/
    Price Yes
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/69
  • Full Record Natural Catastrophe Risk: Creating a Comprehensive National Plan
    Title Natural Catastrophe Risk: Creating a Comprehensive National Plan
    In this white paper the National Association of Insurance Commissioners (NAIC) provides an overview of the approaches that have been made to insuring against natural disasters; offering a background about what has been in the industry, as well as by the government.
    Published Date June 2009
    Organization National Association of Insurance Commissioners
    Link to full Paper http://www.naic.org/documents/committees_c_natural_catastrophe_pl…
    Price No
    Document Type Industry presentation
    Permalinkhttp://catriskfinancing.org/detail/68
  • Full Record Natural Catastrophes and Reinsurance
    Title Natural Catastrophes and Reinsurance
    Published Date 2003
    Organization Swiss Re
    Organization URL www.swissre.com
    Link to full Paper http://media.swissre.com/documents/Nat_Cat_reins_en.pdf
    Price No
    Page Numbers 1-48
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/188
  • Full Record Natural Disaster Insurance and the Equity-Efficiency Trade-Off
    Title Natural Disaster Insurance and the Equity-Efficiency Trade-Off
    This article investigates the role of private insurance in the prevention and mitigation of natural disasters.
    Published Date March 2008
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Pierre Picard
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2007.00246…
    Summary/Abstract This article investigates the role of private insurance in the prevention and mitigation of natural disasters. We characterize the equity-efficiency tradeoff faced by the policymakers under imperfect information about individual prevention costs. It is shown that a competitive insurance market with actuarial rate making and compensatory tax-subsidy transfers is likely to dominate regulated uniform insurance pricing rules or state-funded assistance schemes. The model illustrates how targeted tax cuts on insurance contracts can improve the incentives to prevention while compensating individuals with high prevention costs. The article highlights the complementarity between individual incentives through tax cuts and collective incentives through grants to the local jurisdictions where risk management plans are enforced.
    Volume # 75
    Issue # 1
    Journal Title The Journal of Risk and Insurance
    Page Numbers 17-38
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/171
  • Full Record Natural Disasters Financial Risk Management
    Title Natural Disasters Financial Risk Management
    This paper discusses the technical and policy underpinnings for the use of disaster-linked financial instruments in Latin America and the Caribbean.
    Published Date 2010
    Organization Swiss Re
    Organization URL http://www.swissre.com
    Link to full Paper http://media.swissre.com/documents/Publ11_Natural_Disasters_Finan…
    Page Numbers 1-49
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/189
  • Full Record Natural Disasters: What is the Role for Social Safety Nets?
    Title Natural Disasters: What is the Role for Social Safety Nets?
    This paper makes the case for why safety nets are an important tool for managing the risk of natural hazards.
    Published Date February 2011
    Organization World Bank
    Organization URL http://www.worldbank.org
    Author Larissa Pelham; Edward Clay; Tim Braunholz
    Link to full Paper http://www-wds.worldbank.org/external/default/WDSContentServer/WD…
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/197
  • Full Record Nonlinear Cointegration Relationships Between Non-Life Insurance Premiums and Financial Markets
    Title Nonlinear Cointegration Relationships Between Non-Life Insurance Premiums and Financial Markets
    The aim of this article is to study the adjustment dynamics of the non-life insurance premium (NLIP) and test its dependence to the financial markets in five countries (Canada, France, Japan, the United Kingdom, and the United States).
    Published Date September 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Fredj Jawadi; Catherine Bruneau; Nadia Sghaier
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2009.01314…
    Summary/Abstract The aim of this article is to study the adjustment dynamics of the non-life insurance premium (NLIP) and test its dependence to the financial markets in five countries (Canada, France, Japan, the United Kingdom, and the United States). First, we justify the linkage between the insurance and the financial markets by the underwriting cycle theory and financial models of insurance pricing. Second, we examine the relationship between the NLIP, the interest rate, and the stock price using the recent developments of nonlinear econometrics. We use threshold cointegration models: the switching transition error correctionmodels (STECM).We show that STECM perform better than a linear error correction model (LECM) to reproduce the NLIP dynamics. Our empirical results show that the adjustment of the NLIP in France, Japan, and the United States is rather discontinuous, asymmetrical, and nonlinear. Moreover, we suggest a strong evidence of significant linkages between insurance and financial markets, show two regimes for the NLIP, and find that the NLIP adjustment toward equilibrium is time varying with a convergence speed that varies according to the insurance disequilibrium size.
    Volume # 76
    Issue # 3
    Journal Title The Journal of Risk and Insurance
    Page Numbers 753-783
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/177
  • Full Record On The Pricing of Intermediate Risks
    Title On The Pricing of Intermediate Risks
    This article models the equilibrium price and quantity of risk transfer between firms and financial intermediaries.
    Published Date 2007
    Author Froot, K.A.; O'Connell, G.J.
    Link to full Paper http://fic.wharton.upenn.edu/fic/papers/97/froot.pdf
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/13
  • Full Record On Valuation and Risk Management and the Interface of Insurance and Finance
    Title On Valuation and Risk Management and the Interface of Insurance and Finance
    This paper reviews methods for hedging and valuation of insurance claims with an inherent financial risk, with special emphasis on quadratic hedging approaches and indifference pricing principles and their applications in insurance.
    Published Date 2002
    Author Moller, T.
    Link to full Paper http://www.actuaries.org/EVENTS/Congresses/Cancun/afir_subject/af…
    Price Yes
    Volume # 8
    Issue # 4
    Journal Title British Actuarial Journal
    Page Numbers 787-827
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/6
  • Full Record Optimal Reinsurance Arrangements Under Tail Risk Measures
    Title Optimal Reinsurance Arrangements Under Tail Risk Measures
    This article investigates the optimal riskmanagement strategy of an insurance company subject to regulatory constraints.
    Published Date September 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Carole Bernard; Weldong Tian
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2009.01315…
    Summary/Abstract Regulatory authorities demand insurance companies control their risk exposure by imposing stringent risk management policies. This article investigates the optimal riskmanagement strategy of an insurance company subject to regulatory constraints. We provide optimal reinsurance contracts under different tail risk measures and analyze the impact of regulators’ requirements on risk sharing in the reinsurance market. Our results underpin adverse incentives for the insurer when compulsory Value-at-Risk risk management requirements are imposed. But economic effects may vary when regulatory constraints involve other risk measures. Finally, we compare the obtained optimal designs to existing reinsurance contracts and alternative risk transfer mechanisms on the capital market.
    Volume # 76
    Issue # 3
    Journal Title The Journal of Risk and Insurance
    Page Numbers 709-725
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/165
  • Full Record Parimutuel Insurance for Hedging Against Catastrophic Risk
    Title Parimutuel Insurance for Hedging Against Catastrophic Risk
    This paper examines whether parimutuels can hedge risk-adverse people against catastrophic losses.
    Published Date September 1, 2010
    Organization Willis Research Network
    Organization URL http://www.willisresearchnetwork.com
    Author Chieh Ou-Yang and Neil Doherty
    Link to full Paper http://www.willisresearchnetwork.com/Lists/Publications/Attachmen… Insurance for Hedging against Catastrophic Risk Yang.pdf
    Price No
    Summary/Abstract
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/195
  • Full Record Patrick Maroney
    First Name Patrick
    Last Name Maroney
    Website http://www.stormrisk.org/index.cfm?page=18#Maroney
    Organization Florida State University
    Department Florida Catastrophic Storm Risk Management Center
    Bio He has been a faculty member at Florida State University since 1981. He currently serves as the director of the Florida Catastrophic Storm Risk Management Center. Prior to that position he served as the associate dean for Graduate Programs in the College of Business from 2003 until January 2008. He also served as the chairman of the Risk Management and Insurance Department from 1994 until the fall semester of 2001. Professor Maroney has authored or co-authored more than forty articles and books. Professor Maroney’s research concentration is in the area of insurance law and regulation. Articles have appeared in the Journal of Insurance Regulation, Risk Management and Insurance Review, Florida State University Law Review, Florida Bar Journal, Journal of Insurance Issues, Insurance Counsel Journal, and The American Business Law Journal.
    Permalinkhttp://catriskfinancing.org/detail/77
  • Full Record Pricing and Capital Allocation in Catastrophe Insurance
    Title Pricing and Capital Allocation in Catastrophe Insurance
    This paper studies multi-line pricing and capital allocation by insurance companies when solvency matters to consumers, capital is costly to hold, and the average loss is uncertain.
    Published Date 2002
    Author Zanjani, G.
    Link to full Paper http://www.ingentaconnect.com/content/els/0304405x/2002/00000065/…
    Price Yes
    Volume # 65
    Issue # 2
    Journal Title Journal of Financial Economics
    Page Numbers 283-305
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/15
  • Full Record Rapid Onset Natural Disasters : The Role of Financing in Effective Risk Management - World Bank Pollicy Research Working Paper 3278
    Title Rapid Onset Natural Disasters : The Role of Financing in Effective Risk Management - World Bank Pollicy Research Working Paper 3278
    The authors provide a conceptual framework for designing a comprehensive risk management strategy for rapid onset natural disasters at the country level, with a particular emphasis on the role of catastrophe loss funding. The authors discuss the key policy and technical issues involved in building financially sustainable catastrophe risk transfer and funding programs in disaster prone countries and their links to risk mitigation. They also deal with the cognitive and political economy issues that are likely to arise and ways to accommodate them.
    Published Date 2004/04/01
    Organization World Bank
    Organization URL http://www.worldbank.org
    Author Gurenko, Eugene; Lester, Rodney
    Link to full Paper http://go.worldbank.org/VQGNQKS2E0
    Summary/Abstract The authors provide a conceptual framework for designing a comprehensive risk management strategy for rapid onset natural disasters at the country level, with a particular emphasis on the role of catastrophe loss funding. The authors discuss the key policy and technical issues involved in building financially sustainable catastrophe risk transfer and funding programs in disaster prone countries and their links to risk mitigation. They also deal with the cognitive and political economy issues that are likely to arise and ways to accommodate them.
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/157
  • Full Record Reinsurance Market Outlook: Global Prices Firm As Reinsurers Maintain Core Capital Amid Credit Crisis
    Title Reinsurance Market Outlook: Global Prices Firm As Reinsurers Maintain Core Capital Amid Credit Crisis
    According to this report by AON Benfield, global reinsurance prices firmed for January 1, 2009, renewals and are expected to remain firm as we look forward to the April through July 2009 renewals.
    Published Date 2009
    Organization AON Benfield
    Link to full Paper http://www.aon.com/attachments/AON_Reinsurance_Market_Outlook_2009.pdf
    Price No
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/70
  • Full Record Reinsurance Market Review 2009
    Title Reinsurance Market Review 2009
    This report by the Guy Carpenter company provides detailed coverage of the reinsurance market in 2009.
    Published Date 2009
    Organization Guy Carpenter
    Link to full Paper http://www.guycarp.com/portal/extranet/insights/reportsPDF/2009/Reinsurance Market Review 2009
    Price No
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/46
  • Full Record Reinsurance Market Review 2010
    Title Reinsurance Market Review 2010
    The reinsurance market in 2010 is under pressure. Revenue is being squeezed by supply-driven short-term price reductions, increased retentions and continueing recessionary effects. Profits are being squeezed by weak investment yields, diminishing support from reserve releases, higher regulatory capital demands and fewars of inflations and reserve deficienceies. All of these factors act to push valuations downwards leding to consolidations and share buy-backs in order to reduce capacity and increase leverage. However, the market may transform as the losses associated with the recent spate of catastrophic events in the first quarter of 2010 develop and serve as a precursor to a more active year for catastrophes. Decisions regarding capital management and the use of share buy-backs may require reconsideration.
    Published Date March 2010
    Organization Guy Carpenter
    Organization URL http://www.guycarp.com
    Link to full Paper Cut and paste into new browser window: http://www.guycarp.com/portal/extranet/insights/reportsPDF/2010/2…
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/211
  • Full Record Reinsurance for Natural and Man-Made Catastrophes in the United States: Current State of the Market and Regulatory Reforms
    Title Reinsurance for Natural and Man-Made Catastrophes in the United States: Current State of the Market and Regulatory Reforms
    This article reviews the response of the world’s reinsurance industry to recent megacatastrophes and provides recommendations for regulatory reforms that would improve the efficiency of reinsurance markets. The article also considers the supply of insurance and reinsurance for terrorism and makes recommendations for joint public–private responses to insuring terrorism losses.
    Published Date 2007
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author J. David Cummins
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6296.2007.00115…
    Summary/Abstract U.S. insurers are heavily dependent on global reinsurance markets to enable them to provide adequate primary market insurance coverage. This article reviews the response of the world’s reinsurance industry to recent megacatastrophes and provides recommendations for regulatory reforms that would improve the efficiency of reinsurance markets. The article also considers the supply of insurance and reinsurance for terrorism and makes recommendations for joint public–private responses to insuring terrorism losses. The analysis shows that reinsurance markets responded efficiently to recent catastrophe losses and that substantial amounts of new capital enter the reinsurance industry very quickly following major catastrophic events. Considerable progress has been made in improving risk and exposure management, capital allocation, and rate of return targeting.Insurance price regulation for catastrophe-prone lines of business is a major source of inefficiency in insurance and reinsurance markets. Deregulation of insurance prices would improve the efficiency of insurance markets, enabling markets to deal more effectively with mega-catastrophes. The current inadequacy of the private terrorism reinsurance market suggests that the federal government may need to remain involved in this market, at least for the next several years.
    Volume # 10
    Issue # 2
    Journal Title Risk Mangement and Insurance Review
    Page Numbers 179-220
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/160
  • Full Record Residual Market Property Plans: From Markets of Last Resort to Markets of First Choice
    Title Residual Market Property Plans: From Markets of Last Resort to Markets of First Choice
    This presentation provides an overview of the changing market and the impact it is having.
    Published Date 2007
    Organization Insurance Information Institute
    Organization URL http://www.iii.org
    Link to full Paper http://www.iii.org/white_papers/residual-market-property-plans-fr…
    Price No
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/44
  • Full Record Revealing Reinsurer's Risk Preferences
    Title Revealing Reinsurer's Risk Preferences
    The objective of this paper is to examine the risk preferences of property catastrophe reinsurers. It is an empirical exercise and is focused on catastrophe reinsurance, particularly of the Bermuda companies.
    Published Date 2007
    Organization Lane Financial LLC
    Link to full Paper http://www.lanefinancialllc.com/
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/61
  • Full Record Risk Based Premiums for Insurance Guaranty Funds
    Title Risk Based Premiums for Insurance Guaranty Funds
    This article develops risk-based premium formulas for three cases: a) an ongoing insurer with stochastic assets and liabilities, b) an ongoing insurer also subject to jumps in liabilities (catastrophes), and c) a policy cohort, where claims eventually run off to zero.
    Published Date 1988
    Author Cummins, J.D.
    Link to full Paper http://www.jstor.org/stable/info/2328138?seq=1
    Price Yes
    Volume # 43
    Issue # 4
    Journal Title Journal of Finance
    Page Numbers 823-839
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/11
  • Full Record Risk Management and Insurance Review
    Title Risk Management and Insurance Review
    Risk Management and Insurance Review publishes respected, accessible, and high-quality applied research, and well-reasoned opinion and discussion in the field of risk and insurance.
    Organization URL http://www.wiley.com/bw/journal.asp?ref=1098-1616
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/145
  • Full Record Risk Management, Capital Budgeting, and Capital Structure Policy for Insurers and Reinsurers
    Title Risk Management, Capital Budgeting, and Capital Structure Policy for Insurers and Reinsurers
    This article builds on Froot and Stein in developing a framework for analyzing the risk allocation, capital budgeting, and capital structure decisions facing insurers and reinsurers.
    Published Date June 2007
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Kenneth A. Froot
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2007.00213…
    Summary/Abstract This article builds on Froot and Stein in developing a framework for analyzing the risk allocation, capital budgeting, and capital structure decisions facing insurers and reinsurers. The model incorporates three key features: (i) value-maximizing insurers and reinsurers face product-market as well as capital-market imperfections that give rise to well-founded concerns with risk management and capital allocation; (ii) some, but not all, of the risks they face can be frictionlessly hedged in the capital market; and (iii) the distribution of their cash flows may be asymmetric, which alters the demand for underwriting and hedging. We show these features result in a three-factor model that determines the optimal pricing and allocation of risk and capital structure of the firm. This approach allows us to integrate these features into: (i) the pricing of risky investment, underwriting, reinsurance, and hedging; and (ii) the allocation of risk across all of these opportunities, and the optimal amount of surplus capital held by the firm.
    Volume # 74
    Issue # 2
    Journal Title The Journal of Risk and Insurance
    Page Numbers 273-299
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/162
  • Full Record Risk Premium Project Database
    Title Risk Premium Project Database
    The Risk Premium Project (RPP) represented an extensive, thorough and up-to-date analysis of the theory and empirics of risk assessment for property-casualty insurance. Specifically the Committee on Theory of Risk (COTOR) of the Casualty Actuarial Society has defined three goals: 1.An update of the literature bibliography, incorporating literature from reinsurance, risk management and catastrophe sources, 2.A revision of the key conclusions included in RPP I and II in light of additional literature and results of empirical studies, and 3.Derive recommendation of additional empirical studies in order to enhance the understanding of the current theories and to further quantify particular aspects, update and perhaps provide alternatives to recent models produced.
    Published Date 2000 (updated through 2010)
    Organization Casualty Actuarial Society
    Organization URL http://www.casact.org/rpp2/
    Summary/Abstract The Risk Premium Project (RPP) represents an extensive, thorough and up-to-date analysis of the theory and empirics of risk assessment for property-casualty insurance. The project began in 2000 with RPP I, a review of the actuarial and finance research done until then. Given the vast development in this field, RPP II extended the findings from RPP I with research done until 2010. Since then the RPP database and research results are updated periodically.
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/224
  • Full Record Securitization, Insurance, and Reinsurance
    Title Securitization, Insurance, and Reinsurance
    This article considers strengths and weaknesses of reinsurance and securitization in managing insurable risks.
    Published Date September 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author J. David Cummins; Philippe Trainar
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1539-6975.2009.01319…
    Summary/Abstract This article considers strengths and weaknesses of reinsurance and securitization in managing insurable risks. Traditional reinsurance operates efficiently in managing relatively small, uncorrelated risks and in facilitating efficient information sharing between cedants and reinsurers. However, when the magnitude of potential losses and the correlation of risks increase, the efficiency of the reinsurance model breaks down, and the cost of capital may become uneconomical. At this juncture, securitization has a role to play by passing the risks along to broader capital markets. Securitization also serves as a complement for reinsurance in other ways such as facilitating regulatory arbitrage and collateralizing low-frequency risks.
    Volume # 76
    Issue # 3
    Journal Title The Journal of Risk and Insurance
    Page Numbers 463-492
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/173
  • Full Record Sigma; Securitization- New Opportunities for Insurers and Investors
    Title Sigma; Securitization- New Opportunities for Insurers and Investors
    This report provides information on insurance linked securities.
    Published Date 2006
    Organization Swiss Re
    Organization URL http://www.swissre.com
    Link to full Paper http://www.swissre.com/media/news_releases/swiss_re_sigma_study_o…
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/65
  • Full Record Sovereign Natural Disaster Insurance for Developing Countries : A Paradigm Shift in Catastrophe Risk Financing - World Bank Policy Research Working Paper 4345
    Title Sovereign Natural Disaster Insurance for Developing Countries : A Paradigm Shift in Catastrophe Risk Financing - World Bank Policy Research Working Paper 4345
    Economic theory suggests that countries should ignore uncertainty for public investment and behave as if indifferent to risk because they can pool risks to a much greater extent than private investors can. This paper discusses the general economic theory in the case of developing countries.
    Published Date September 2007
    Organization World Bank
    Organization URL http://www.worldbank.org
    Author Ghesquiere, Francis; Mahul, Olivier
    Link to full Paper http://go.worldbank.org/Q017VE2SV0
    Price No
    Summary/Abstract Economic theory suggests that countries should ignore uncertainty for public investment and behave as if indifferent to risk because they can pool risks to a much greater extent than private investors can. This paper discusses the general economic theory in the case of developing countries. The analysis identifies several cases where the government's risk-neutral assumption does not hold, thus making rational the use of ex ante risk financing instruments, including sovereign insurance. The paper discusses the optimal level of sovereign insurance. It argues that, because sovereign insurance is usually more expensive than post-disaster financing, it should mainly cover immediate needs, while long-term expenditures should be financed through post-disaster financing (including ex post borrowing and tax increases). In other words, sovereign insurance should not aim at financing the long-term resource gap, but only the short-term liquidity need.
    Page Numbers 26
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/153
  • Full Record Sue Ellen Smith
    First Name Sue Ellen
    Last Name Smith
    Website http://www.stormrisk.org
    Organization Florida State University
    Department Florida Catastrophic Storm Risk Management Center
    Bio She developed and manages the Center's extensive website (www.stormrisk.org), Storm Center Brief newsletter and other publications, manages outreach and media relations, tracks and reports the Center's progress towards its legislative-mandated mission, organizes and manages conferences and symposia, and assists the Center Director in managing research projects as well as Center operations. Ms. Smith has 20 years of experience managing communications, programs, and fundraising for nonprofit organizations and academic institutions. She has a B.S. in Journalism from the University of Florida.
    Permalinkhttp://catriskfinancing.org/detail/80
  • Full Record Swiss Re: ILS Market Update
    Title Swiss Re: ILS Market Update
    The start of 2011 welcomed the highest volume of first quarter issuance in the history of catastrophe bonds. With new issue volumes over USD 1.0 bn in Q1 and a total of USD 1.8 bn in the first half of 2011, sponsors demonstrated their commitment to the sector. In H1 2011, a number of factors resulted in less issuance than expected. The Tohoku EQ event, the Christchurch New Zealand earthquake, flooding and Tropical Cyclone Yasi in Australia, and the 2011 Super Outbreak of tornadoes in the United States combined for estimated losses in excess of USD 50 bn in early 2011. The accumulation of losses eroded many reinsurers’ earnings and in some cases also affected capital. The resulting upward pressure on reinsurance rates created uncertainty for sponsors as to how their reinsurance spend would be affected by the important 1 July mid-year renewals. In addition to these events, the release of RMS RiskLink Version 11, which for many hurricane portfolios produces substantially higher expected losses, also increased uncertainty for the July renewals. In the face of these factors many sponsors decided to first put their 1 July 2011 reinsurance structures in place and revisit potential ILS coverage later in the year after the markets had evaluated these recent developments.
    Published Date July 2011
    Organization Swiss Re
    Organization URL http://www.swissre.com
    Link to full Paper http://media.swissre.com/documents/ILS_Market_Update_July_2011.pdf
    Price No
    Volume # XVI
    Page Numbers 1-15
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/185
  • Full Record Swiss Re: Sigma 04/2009 Role of Indices in ILS
    Title Swiss Re: Sigma 04/2009 Role of Indices in ILS
    The importance of index-linked as a capital and risk management tool for reinsurers and as a diversifying asset class for investors is increasing. This paper concentrates on index-linked insurance transactions.
    Published Date November 2009
    Organization Swiss Re
    Organization URL htp://www.swissre.com
    Link to full Paper http://media.swissre.com/documents/sigma4_2009_en.pdf
    Price No
    Volume # 2009
    Issue # Sigma 4
    Page Numbers 1-48
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/186
  • Full Record Tax Deductible Pre-Event Catastrophe Loss Reserves: The Case of Florida
    Title Tax Deductible Pre-Event Catastrophe Loss Reserves: The Case of Florida
    This paper examines the institution of catastrophe loss reserves in a stylized mode of insurance provisions.
    Published Date 2008
    Organization Casualty Actuarial Society
    Organization URL http://www.casact.org
    Author Andreas Milidonis, Ph.D; Martin F. Grace, Ph.D.
    Link to full Paper http://www.casact.org/library/astin/vol38no1/13.pdf
    Price No
    Volume # 1
    Issue # 38
    Journal Title Astin Bulletin
    Page Numbers 13-51
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/219
  • Full Record The 2008 Review of ILS Transactions - What Price ILS - A Work in Progress
    Title The 2008 Review of ILS Transactions - What Price ILS - A Work in Progress
    This review discusses the questions plaguing the market in regards to ILS pricing.
    Published Date 2008
    Organization Lane Financial LLC
    Link to full Paper http://www.lanefinancialllc.com/
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/62
  • Full Record The Allocation of Catastrophe Risk
    Title The Allocation of Catastrophe Risk
    This paper summarizes the research examining: (1) to what extent is catastrophe risk is being shared (insured); (2) whether or not the allocation of catastrophe risk consistent with notions of optimal risk sharing; (3) if not, what market imperfections hinder the efficient allocation of catastrophe risk; and (4) are there government policies or private market solutions that could lead to a more efficient allocation of catastrophe risk?
    Published Date 2002
    Author Niehaus,G.
    Link to full Paper http://www.ingentaconnect.com/content/els/03784266/2002/00000026/…
    Price Yes
    Volume # 26
    Issue # 2
    Journal Title Journal of Banking and Finance
    Page Numbers 585-596
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/9
  • Full Record The Annual 2009 ILS Review and Q1 2009 Quarterly Performance Review
    Title The Annual 2009 ILS Review and Q1 2009 Quarterly Performance Review
    Published Date April 2009
    Organization Lane Financial LLC
    Organization URL http://www.landfinancialllc.com
    Link to full Paper http://www.lanefinancialllc.com/images/stories/Publications/2009-04-27 change we can believe in.pdf
    Price No
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/204
  • Full Record The Basis Risk of Catastrophic Loss Index Securities
    Title The Basis Risk of Catastrophic Loss Index Securities
    Using a windstorm simulation model developed by Applied Insurance Research, this article analyzes the effectiveness of catastrophic-loss index options in hedging hurricane losses for Florida insurers.
    Published Date 2004
    Author Cummins, J.D.; Lalonde, D.; and Phillips, R.
    Link to full Paper http://www.ingentaconnect.com/content/els/0304405x/2004/00000071/…
    Price Yes
    Volume # 71
    Issue # 1
    Journal Title Journal of Financial Economics
    Page Numbers 77-111
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/14
  • Full Record The Benefits of Introducing a Mandatory State Hurricane Insurance Scheme in Florida
    Title The Benefits of Introducing a Mandatory State Hurricane Insurance Scheme in Florida
    In this paper, the author argues the benefits of creating a mandatory state run catastrophe insurance scheme.
    Published Date 2009
    Author von Ungern-Sternberg, T.
    Link to full Paper http://www.hec.unil.ch/deep/textes/09.10.pdf
    Price No
    Journal Title Working paper from the Univeristy of Lausanne
    Page Numbers 1-22
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/37
  • Full Record The Catastrophe Bond Market at Year-End 2007
    Title The Catastrophe Bond Market at Year-End 2007
    This report provides an update on cat bond transaction and market dynamics from the past year (2007).
    Published Date 2007
    Organization Guy Carpenter
    Link to full Paper http://www.guycarp.com/portal/extranet/insights/reportsPDF/2008/Cat Bond 2 27.pdf
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/48
  • Full Record The Economics of Natural Disasters - World Bank Policy Research Working Paper 5507
    Title The Economics of Natural Disasters - World Bank Policy Research Working Paper 5507
    This World Bank paper defines what's meant by a disaster's economic cost.
    Published Date 2010
    Organization World Bank
    Organization URL http://www.worldbank.org
    Author Stephanie Hallegatte, Valentin Przyluski
    Link to full Paper http://go.worldbank.org/ZHXFEOU560
    Summary/Abstract Large-scale disasters regularly affect societies over the globe, causing large destruction and damage. After each of these events, media, insurance companies, and international institu-tions publish numerous assessments of the "cost of the disaster." However these assessments are based on different methodologies and approaches, and they often reach different results. Besides methodological differences, these discrepancies are due to the multi-dimensionality in disaster impacts and their large redistributive effects, which make it unclear what is included in the estimates. But most importantly, the purpose of these assessments is rarely specified, although different purposes correspond to different perimeters of analysis and different definitions of what a cost is. To clarify this situation, this paper proposes a definition of the cost of a disaster, and emphasizes the most important mechanisms that explain and determine this cost. It does so by first explaining why the direct economic cost, that is, the value of what has been damaged or destroyed by the disaster, is not a sufficient indicator of disaster seriousness and why estimating indirect losses is crucial to assess the consequences on welfare. The paper describes the main indirect consequences of a disaster and the following reconstruction phase, and discusses the economic mechanisms at play. It proposes a review of available methodologies to assess indirect economic consequences, illustrated with examples from the literature. Finally, it highlights the need for a better understanding of the economics of natural disasters and suggests a few promising areas for research on this topic.
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/151
  • Full Record The Evolving Market for Catastrophe Event Risk
    Title The Evolving Market for Catastrophe Event Risk
    This paper discusses the recent changes in the market for catastrophe risk.
    Published Date 1999
    Author Froot, K.A.
    Link to full Paper http://www.nber.org/papers/w7287.pdf
    Price No
    Journal Title National Bureau of Economic Research
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/26
  • Full Record The Florida Senate Issue Brief 2009-301
    Title The Florida Senate Issue Brief 2009-301
    Government brief
    Published Date 2008
    Organization Florida Senate
    Link to full Paper http://www.flsenate.gov/data/Publications/2009/Senate/reports/int…
    Price No
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/66
  • Full Record The Fundamentals of Insurance Linked Securities
    Title The Fundamentals of Insurance Linked Securities
    Since its inception in 1996, the market for insurance-linked securities(ILS) has witnessed robust growth worldwide. Re/insurers, governments and corporations continue to access capital market solutions to finance growth, manage capital and transfer risk related to extreme events.
    Published Date 2011
    Organization Swiss Re
    Organization URL http://www.swissre.com/
    Link to full Paper http://media.swissre.com/documents/SRCM_The_Fundamentals_of_ILS_web.pdf
    Price No
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/184
  • Full Record The Global Market for Reinsurance: Consolidation, Capacity, and Efficiency
    Title The Global Market for Reinsurance: Consolidation, Capacity, and Efficiency
    This paper analyzes the economic impact of the wave of mergers and acquisitions currently underway in the global reinsurance market.
    Published Date 2002
    Author Cummins, J.D.; Weiss, M.A.
    Link to full Paper http://muse.jhu.edu/journals/brookings-wharton_papers_on_financia…
    Price Yes
    Journal Title Working Paper from Wharton School of Business, University of Pennsylvania
    Page Numbers 1-63
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/29
  • Full Record The Intermediation of Financial Risks; Evolution in the Catastrophe Reinsurance Market
    Title The Intermediation of Financial Risks; Evolution in the Catastrophe Reinsurance Market
    The article provides evidence concerning the imperfections in the reinsurance market.
    Published Date 2008
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Kenneth A. Froot
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6296.2008.00141…
    Summary/Abstract In this article, the author works to provide evidence concerning the imperfections in the reinsurance market. The author also tries to get at some of the root causes of these imperfections, e.g., the behavior of ratings firms and the agency problems associated with the corporate form of ownership. Also,the author summarizes the recent evolution of intermediation for catastrophic risk. A simple framework for an integrated theory of optimal financial policy for insurers and reinsurers is discussed. Finally, policy implications for intermediation of financial risks in view of evolving financial solutions for catastrophic risk are proposed.
    Volume # 11
    Issue # 2
    Journal Title Risk Management and Insurance Review
    Page Numbers 281-294
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/169
  • Full Record The Limits of Diversification When Losses May Be Large
    Title The Limits of Diversification When Losses May Be Large
    This article analyzes the limitations of diversification for heavy-tailed risks. It provides additional insight in two ways. First, showing that similar nondiversification results are valid for large class of risks with bounded support, as long as the risks are concentrated on a sufficiently large interval. The required length of the support depends on the number or risks available and on the degree of heavy-tailedness. Second,it relates the value at risk approach to more general risk frameworks.
    Published Date 2007
    Author Ibragimov, R.; Walden, J.
    Link to full Paper http://www.economics.harvard.edu/pub/hier/2006/HIER2104.pdf
    Price No
    Journal Title Harvard Institute of Economic Research
    Permalinkhttp://catriskfinancing.org/detail/10
  • Full Record The Market for Catastrophic Risk: A Clinical Examination
    Title The Market for Catastrophic Risk: A Clinical Examination
    This paper examines the market for catastrophe event risk - i.e., financial claims that are linked to losses associated with natural hazards, such as hurricanes and earthquakes.
    Published Date 2001
    Author Froot, K.A.
    Link to full Paper http://www.ingentaconnect.com/content/els/0304405x/2001/00000060/…
    Price Yes
    Volume # 60
    Issue # 2
    Journal Title Journal of Financial Economics
    Page Numbers 529-571
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/12
  • Full Record The Perfect Storm: Hurricanes, Insurance and Regulation
    Title The Perfect Storm: Hurricanes, Insurance and Regulation
    This article examines important market developments and evaluates associated government policies. We comment on how regulation is affecting the equilibration of insurance markets and offer opinions on policies that are helpful and harmful.
    Published Date 2009
    Organization American Risk and Insurance Association
    Organization URL http://www.aria.org
    Author Martin F. Grace; Robert W. Klein
    Link to full Paper http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6296.2009.01155…
    Summary/Abstract The intense hurricane seasons of 2004 and 2005 caused considerable instability in property insurance markets in coastal states with the greatest problems occurring in Florida and the Southeast. Insurers have substantially raised rates and decreased their exposures. While no severe hurricanes struck the United States in 2006 and 2007, market pressures remain strong given the high risk still facing coastal states. These developments generate considerable concern and controversy among various stakeholder groups. Government responses have varied. In Florida, political pressures prompted a wave of legislation and regulations to expand government underwriting and subsidization of hurricane risk and constrain insurers' rates and market adjustments. Other states' actions seem more moderate. In this context, it is important to understand how property insurance markets have been changing and governments have been responding to increased catastrophe risk. This article examines important market developments and evaluates associated government policies. We comment on how regulation is affecting the equilibration of insurance markets and offer opinions on policies that are helpful and harmful.
    Volume # 12
    Issue # 1
    Journal Title Risk Management and Insurance Review
    Page Numbers 81-124
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/163
  • Full Record The Property Insurance Market in Florida 2004: The Difference a Decade Makes
    Title The Property Insurance Market in Florida 2004: The Difference a Decade Makes
    This report provides an analysis of the nature of hurricanes and predictions regarding future levels of hurricane activity.
    Published Date 2005
    Organization Florida Office of Insurance Regulation
    Link to full Paper http://www.floir.com/siteDocuments/TheDifferenceADecadeMakes.pdf
    Price No
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/43
  • Full Record The State of Florida's Property Insurance Market
    Title The State of Florida's Property Insurance Market
    Completed for the Florida Legislature in December 2011, this report examines the present state of the catastrophic risk finance system in Florida, including its quasi-public property insurance entities and the private market for property insurance. Historical context is provided that sets the stage for an appropriate evaluation of these markets. Interventions by Florida lawmakers and regulators are compared with those of other coastal states and are evaluated for their potential future costs to Florida policyholders and citizens. The health of Florida's private marketplace is analyzed through an overview of both current market statistics and trends over time. Recommendations are offered as to how best stablize the market and correct the mispricing of the State's catastrophic risk.
    Published Date December 2011
    Organization The Florida State University Florida Catastrophic Storm Risk Management Center
    Organization URL http://www.stormrisk.org
    Author Patrick F. Maroney, Lorilee Medders, Charles Nyce
    Author URL http://www.stormrisk.org/index.cfm?page=2
    Link to full Paper http://www.stormrisk.org/index.cfm?page=20
    Price No
    Summary/Abstract Completed for the Florida Legislature in December 2011, this report examines the present state of the catastrophic risk finance system in Florida, including its quasi-public property insurance entities and the private market for property insurance. Historical context is provided that sets the stage for an appropriate evaluation of these markets. Interventions by Florida lawmakers and regulators are compared with those of other coastal states and are evaluated for their potential future costs to Florida policyholders and citizens. The health of Florida's private marketplace is analyzed through an overview of both current market statistics and trends over time. Recommendations are offered as to how best stablize the market and correct the mispricing of the State's catastrophic risk.
    Document Type White paper
    Permalinkhttp://catriskfinancing.org/detail/222
  • Full Record The Year That Was! The 2007 Review of the Insurance Securitization Market
    Title The Year That Was! The 2007 Review of the Insurance Securitization Market
    The paper reviews the 2007 deals, the price trends and the secondary market activity for the insurance securitization market.
    Published Date 2007
    Organization Lane Financial LLC
    Link to full Paper http://www.lanefinancialllc.com/
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/63
  • Full Record U.S. Insurance Market Report
    Title U.S. Insurance Market Report
    This report covers competition, capacity, catastrophe risks, and major coverage lines issued within the U.S. insurance market.
    Organization Marsh
    Link to full Paper http://www.insurancemarketreport.com/
    Price Yes
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/64
  • Full Record Using Catastrophe Linked Securities to Diversify Insurance Risk
    Title Using Catastrophe Linked Securities to Diversify Insurance Risk
    In this article, the lack of financial capacity in the catastrophe line of the global reinsurance market is studied, emphasizing the significance of natural catastrophes in the early 1990s and the reaction of the industry in issuing innovative products designed to spread the excess risk more widely.
    Published Date 1999
    Author Louberge, H.; Kellezi, E.; Gilli, M.
    Link to full Paper Cut and paste link into new browser window - http://proquest.umi.com/pqdweb?index=0&did=47573247&SrchMode=1&si…
    Price Yes
    Volume # 22
    Issue # 2
    Journal Title Journal of Insurance Issues
    Page Numbers 125
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/16
  • Full Record World Catastrophe Reinsurance Market 2008
    Title World Catastrophe Reinsurance Market 2008
    This paper focuses on catastrophe reinsurance rates for 2008.
    Published Date 2008
    Organization Guy Carpenter
    Link to full Paper http://www.guycarp.com/portal/extranet/insights/reportsPDF/2008/World Cat 2008.pdf
    Price No
    Document Type Article
    Permalinkhttp://catriskfinancing.org/detail/47
  • Full Record World Catastrophe Reinsurance Market 2009
    Title World Catastrophe Reinsurance Market 2009
    Published by the Guy Carpenter company, this report provides updates of events that have occurred in the world of catastrophe reinsurance.
    Published Date 2009
    Organization Guy Carpenter
    Link to full Paper http://www.guycarp.com/portal/extranet/insights/reportsPDF/2009/World Catastrophe Reinsurance Market 2009
    Price No
    Document Type Industry paper
    Permalinkhttp://catriskfinancing.org/detail/67
  • Full Record World Catastrophe Reinsurance Market Review 2011
    Title World Catastrophe Reinsurance Market Review 2011
    2011 has been another challenging year for the (re)insurance sector. The sector is in a period of heightened market uncertainty as it begins to focus on the 2012 renewals. The devastating earthquakes in New Zealand and Japan, along with damaging tornadoes and floods in the United States and Australia, have resulted in insured losses of around USD70 billion so far this year.
    Published Date September 2011
    Organization Guy Carpenter
    Organization URL http://www.guycarp.com
    Link to full Paper Cut and paste into new browser window - http://www.guycarp.com/portal/extranet/insights/reportsPDF/2011/World Catastrophe Report 2011.pdf?vid=2
    Document Type Industry report
    Permalinkhttp://catriskfinancing.org/detail/208