Logo
Munich Personal RePEc Archive

The Future of Global Reinsurance

Chichilnisky, Graciela (1996): The Future of Global Reinsurance. Published in: Global Reinsurance North American Special (1996): pp. 67-71.

[thumbnail of MPRA_paper_8334.pdf]
Preview
PDF
MPRA_paper_8334.pdf

Download (1MB) | Preview

Abstract

To provide a map to the future, we need a realistic appraisal of how we got where we are. This is the story of how humans have hedged risks. There are two basic and distinct approaches: statistical and economical. The former is typical of the insurance industry; the latter typifies the securities industry. Both are needed to manage today's catastrophic risks. Neither alone will do. I will show below how a combination of both leads to efficient outcomes, and is the way to be the future.

Hedging unknown catastrophic risks requires a blend of skills from the securities and the insurance industries. By tapping large and liquid capital markets, reinsurers will be better able to deal with correlated, catastrophic risks. At the end of the intelligent customized use of derivatives and technology will separate the winners from the losers.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.