The Intermediation of Financial Risks: Evolution in the Catastrophe Reinsurance Market

摘要

Each time a major and costly catastrophic peril occurs, a chorus arises from within the insurance community and beyond. The critics claim that the reinsurance market is inadequate, even dysfunctional, in cheaply redistributing risks. They cite frustration with the high prices and limited availability of capacity that follows the catastrophe, with the limited choice of sometimes-questionable credit risks, etc.