Reinsurance Networks and Their Impact on Reinsurance Decisions: Theory and Empirical Evidence

@inproceedings{Lin2015ReinsuranceNA,
  title={Reinsurance Networks and Their Impact on Reinsurance Decisions: Theory and Empirical Evidence},
  author={Yijia Lin and Jifeng Yu and Manferd o. Peterson},
  year={2015}
}
type="main" xml:lang="en"> This article investigates the role of reinsurance networks in an insurer's reinsurance purchase decision. Drawing on network theory, we develop a framework that delineates how the pattern of linkages among reinsurers determines three reinsurance costs (loadings, contagion costs, and search and monitoring costs) and characterizes an insurer's optimal network structure. Consistent with empirical evidence based on longitudinal data from the U.S. property and casualty… CONTINUE READING

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