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New Approaches to Managing Catastrophic Insurance Risk

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Risk Management

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Abstract

Insurance and financial markets are converging as (re-)insurers are searching for new ways of expanding their underwriting capacities and managing their risk exposures. Catastrophe-linked instruments have already established themselves as a new asset class which offers unique profit and diversification opportunities for the investor community. This chapter analyzes the principal forces behind the securitization of catastrophic insurance risk and thereby highlights key factors which determine to what extent and with what means other forms of insurance risks (in particular other types of property & casualty, longevity, health and weather risks) can be transferred to financial markets in the future.

We thank Petra Riemer-Hommel and Robert Vollrath for helpful comments and Gudrun Fehler for editorial assistance. The usual disclaimer applies.

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Author information

Authors and Affiliations

  1. European Business School, International University, Schloss Reichartshausen, D-65375, Oestrich-Winkel, Germany

    Mischa Ritter

Authors
  1. Ulrich Hommel
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  2. Mischa Ritter
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Editor information

Editors and Affiliations

  1. Otto Beisheim Graduate School of Management, WHU, Burgplatz 2, 56179, Vallendar

    Michael Frenkel  & Markus Rudolf  & 

  2. Stiftungslehrstuhl Unternehmensfinanzierung und Kapitalmärkte, EUROPEAN BUSINESS SCHOOL International University, Schloss Reichartshausen, 65375, Oestrich-Winkel

    Ulrich Hommel

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Hommel, U., Ritter, M. (2005). New Approaches to Managing Catastrophic Insurance Risk. In: Frenkel, M., Rudolf, M., Hommel, U. (eds) Risk Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-26993-2_17

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