Reinsurance is a financial market that trades in the risk of
unpredictable and devastating disasters - such as Hurricane Katrina,
the Tohoku earthquake and tsunami, and the terrorist attacks on the
World Trade Centre. Such disasters are increasing in both frequency
and severity, with the cost of their losses mounting rapidly.
Reinsurance insures insurance companies, enabling them to pay claims
arising from these losses. It is thus a market mechanism that is a
critical part of the social and economic safety net, helping to pick
up the pieces after disasters. Yet, how is the risk of such disasters
calculated and traded in a global market? This book brings to life the
reinsurance market through vivid real-life tales that draw from an
ethnographic, "fly-on-the-wall" study of the global reinsurance
industry over three annual cycles. The authors shadowed underwriters
around the world as they traded risks through multiple disasters. For
instance, this book takes readers into the desperate hours of pricing
Japanese risks during March 2011, while the devastating aftermath of
the Tohoku earthquake is unfolding. To show how the market works, the
book offers authentic tales gathered from observations of reinsurers
in Bermuda, Lloyd's of London, Continental Europe and SE Asia as they
evaluate, price and compete for different risks as part of their
everyday practice. Understanding how this market for disasters works
has never been more critical given the impact of climate change and
increased global connectivity, where a flood in one country can
trigger losses to supply chains around the world. The authors develop
a novel concept of how global markets work, which advances scholarship
and challenges current thinking about how financial markets trade in
intangible assets such as risk. This book will be useful to readers
interested in markets for disasters, insurance, reinsurance and
financial markets, and academics interested in the practice of
financial markets specifically or the practice of strategy and
organizations generally.
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The Practice of Risk Trading in the Global Reinsurance Industry
Produktdetaljer
ISBN
9780191641855
Publisert
2020
Utgave
1. utgave
Utgiver
Oxford University Press Academic UK
Språk
Product language
Engelsk
Format
Product format
Digital bok