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Publications
Publications
  • fall 2008
  • Article
  • Risk Management and Insurance Review

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

By: Kenneth A. Froot
  • Format:Print
  • | Pages:14
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Abstract

In this paper, I provide evidence concerning the imperfections in the reinsurance market. I try 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. I also summarize 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.

Keywords

Catastrophe Risk; Corporate Finance; Banking And Insurance; Hedging; Banking; Financial Markets; Insurance; Policy; Risk Management; Natural Disasters; Cost of Capital; Asset Pricing; Insurance Industry

Citation

Froot, Kenneth A. "The Intermediation of Financial Risks: Evolution in the Catastrophe Reinsurance Market." Risk Management and Insurance Review 11, no. 2 (fall 2008): 281–294.
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About The Author

Kenneth A. Froot

→More Publications

More from the Author

    • July 2017
    • Journal of Financial Economics

    What Do Measures of Real-Time Corporate Sales Tell Us About Earnings Surprises and Post-announcement Returns?

    By: Kenneth A. Froot, Namho Kang, Gideon Ozik and Ronnie Sadka
    • May 2012 (Revised February 2013)
    • Faculty Research

    Innovating into Active ETFs: Factor Funds Capital Management LLC (TN)

    By: Lauren Cohen, Kenneth Froot and Timothy Gray
    • Journal of Portfolio Management

    How Institutional Investors Frame Their Losses: Evidence on Dynamic Loss Aversion from Currency Portfolios

    By: Kenneth A. Froot, John Arabadjis, Sonya Cates and Stephen Lawrence
More from the Author
  • What Do Measures of Real-Time Corporate Sales Tell Us About Earnings Surprises and Post-announcement Returns? By: Kenneth A. Froot, Namho Kang, Gideon Ozik and Ronnie Sadka
  • Innovating into Active ETFs: Factor Funds Capital Management LLC (TN) By: Lauren Cohen, Kenneth Froot and Timothy Gray
  • How Institutional Investors Frame Their Losses: Evidence on Dynamic Loss Aversion from Currency Portfolios By: Kenneth A. Froot, John Arabadjis, Sonya Cates and Stephen Lawrence
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