Centro de Documentación de Fundación MAPFRE - The Effects of business mix on internal and external reinsurance usage

Notes: Sumario: Our overali aim in this research is to identify the effects of the business mix of insurers on their overail reinsurance usage, based on the use of the Cragg (Econometrica39: 829-844, 1971) model, for our analysis of the reinsurance decisions made by insurers in the U.K. life insurance industry between 2005 and 2014. Our findings reveal a positive (negative) correlation between with-profit (unit-linked) business and reinsurance, thereby indicating that insurers underwriting riskier product mixes have a higher demand for reinsurance. We go on to separate total reinsurance into internal and external reinsurance before carrying out further analyses. Our results reveal that insurers underwriting more with-profit business appear to use more internal reinsurance, which would seem to imply that internal reinsurance could be more cost effective for those reinsurance transactions involving greater managerial discretion.Related records: En: Geneva papers on risk and insurance : issues and practice. - Geneva : The Geneva Association, 1976- = ISSN 1018-5895. - 01/10/2019 Volumen 44 Número 4 - octubre 2019 , p. 624-652Materia / lugar / evento: Mercado de reaseguros Reaseguro Análisis de mercados Otros autores: Shiu, Yun-Ming
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Rights: In Copyright (InC)

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