Abstract
In the following paper, we want to make some considerations on pricing of a specific integrated risk reinsurance contract form called “doubletrigger” from the viewpoint of a reinsurance company.1 Double-trigger reinsurance contracts, which up to now have not really been focussed in the scientific literature 2, can be classified in the area of Alternative Risk Transfer (“ART”) 3. They differ from other protection strategies of (primary) insurance companies in that, along with a defined claim result, additional realizations from the investment side 4 are integrated in such a way that only a specific combination of events will result compensation payments by the reinsurer. Accordingly, the objective of these kinds of contracts is that they (only) pay in situations in which poor underwriting results can not be compensated by good capital investment returns and vice versa.
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Schmeiser, H. (2002). Pricing of a New Integrated Risk Reinsurance Product. In: Gaul, W., Ritter, G. (eds) Classification, Automation, and New Media. Studies in Classification, Data Analysis, and Knowledge Organization. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-55991-4_41
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DOI: https://doi.org/10.1007/978-3-642-55991-4_41
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