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Not sure what the controversy here is. Catastrophe risk is the bread and butter of property insurance.
by Onavo 1y ago
Not sure what the controversy here is. Catastrophe risk is the bread and butter of property insurance.
- falseprofit 1y agoFelt like the article ended before a thesis statement.
- gwern 1y ago> She is the author of “Investable! When Pandemic Risk Meets Speculative Finance – A Cautionary Tale,” from which this article is adapted. So I think structurally, the conclusion here is that 'cat bonds are an example of how insurers can work with abstract risks, and so any risk (such as global pandemic) could be worked with this way', and the rest of the book then examines how people are trying to actually do so with pandemic risk.
- panguma 1y agoRead the book, it’s in there.
- PaulHoule 1y agoBut as traditional insurance, not cat bonds.
- Onavo 1y agoI mean eventually once you proceed down the financial tree you get reinsurance linked securities. It's been this way for decades. It nothing new.
- grvdrm 1y agoIndeed. Simplified: Insured->Broker->Insurer->ReinsuranceBroker->Reinsurer Here, where you see reinsurer, instead may be: ILS fund Cat Bond