TITLE
"The Application of Option Models to The Reinsurance Market,"
Journal of Insurance Issues,
Brotman, Billie Ann, January 1987, Vol. X., No. 1: 13-20.
ABSTRACT
Reinsurance is defined as an insurer's insurance. A treaty arrangement
or pooling method is normally employed whereby a proportional
amount of risk or losses are transferred. Characteristics that
the treaty arrangement and futures' markets share in common are
highlighted. Hedging strategies involving the use of options will
be examined in lieu of the special needs of an insurance company
ceding risk, as well as those acting as reinsurers.
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