Improving risk allocation through cat bonds

Research, Preprint OPEN
Nell, Martin; Richter, Andreas;
  • Publisher: Univ., Institut für Versicherungsbetriebslehre Hamburg
  • Subject: Insurance | D8 | G22 | G10 | Decision Making and Risk | Financial Markets | Insurance,Financial Markets,Decision Making and Risk
    • jel: jel:G22 | jel:G10 | jel:D8
      ddc: ddc:330

Catastrophe bonds (cat bonds) often use index triggers, such as, for instance, parametric descriptions of a catastrophe. This implies the problem of the so-called basis risk, resulting from the fact that, in contrast to traditional reinsurance, this kind of coverage can... View more
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