期刊名称：Hitotsubashi Journal of Commerce and Management
印刷版ISSN：0018-2796
出版年度：2004
卷号：39
期号：1
页码：1-15
出版社：Hitotsubashi Academy, Hitotsubashi University
摘要：In line with the surge in frequency and severity of natural and man-made disasters, financing catastrophe losses has become a crucial challenge for property and casualty insurers (hereafter, P/C insurers). According to Sigma (2004), the total loss attributable to catastrophic events in 2003 amounted to approximately 70 billion US dollars, a figure that has been on the increase since the 1970s.1 Of this amount for 2003, 58 billion dollars was caused by natural catastrophes and 12 billion was from man-made disasters. Insured properties are especially exposed to catastrophes, including hurricanes and earthquakes, and thus, primary P/C insurers need to hedge the catastrophe risk of their portfolios of property insurance policies covering not only straight fire, but also flood and earthquakes, etc. by e$cient mechanisms to finance possible enormous losses. The traditional solution for primary insurers to have the capacity to underwrite such property risks is to limit their losses through reinsurance transactions. Excess-of-loss contracts allow them to transfer single-event claims above a given amount to single or multiple numbers of reinsurers. They can alternatively shift a given percentage of losses onto other reinsurers by proportional reinsurance arrangements
