The Market for Reinsurance

Boyer, M. Martin; Dupont-Courtade, Théodora

doi:10.2139/ssrn.2265896

Cited by 3 publications

(5 citation statements)

References 68 publications

(46 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In pricing motivations, competitors have an economic rationale that it will be good for both them and their rivals to “lift all boats” (Chen & Miller, , p. 761); being motivated by a desire to do well for one's own firm, even if this also generates benefits for competitors (McGrath et al, ). Market motivations to price according to the perceived risk, rather than undercutting rivals to win business, also contain an economic element since a deteriorating market is not good for anyone (Boyer & Dupont‐Courtade, ; Gugerli, ). However, they also include broader considerations about social obligation to the collective and long‐term health of the market rather than individual advantage being the primary focus.…”

Section: Discussion and Contributionsmentioning

confidence: 99%

“…Second, to ensure equity, the ultimate market price offered on a deal is the same for all parties in the syndicate. As a reinsurer explained to us, “we all have equal skin in the game” (interview), ensuring that they all have the same incentive to trade and to bear any subsequent losses (Boyer & Dupont‐Courtade, ; Jarzabkowski et al, ).…”

Section: Research Context and Methodsmentioning

confidence: 99%

“…We interrogated these various dynamics by iterating with the literature on motivations behind relational competing, referring to both the historical background of our industry (Baker, 1996;Boyer & Dupont-Courtade, 2013;Gugerli, 2013), and the literature on ideological, social, and economic reasons for relational competition (Chen & Miller, 2015;Dyer & Singh, 1998;Ingram & Roberts, 2000). Our in-depth immersion gave us insight into why actors competed in the way they did.…”

Section: Data Collection and Analysismentioning

confidence: 99%

See 2 more Smart Citations

Toward a social practice theory of relational competing

Jarzabkowski

Bednarek

2017

Strategic Management Journal

View full text Add to dashboard Cite

Research Summary: This article brings together the competitive dynamics and strategy-as-practice literatures to investigate relational competition. Drawing on a global ethnography of the reinsurance market, we develop the concept of micro-competitions, which are the focus of competitors' everyday competitive practices. We find variation in relational or rivalrous competition by individual competitors across the phases of a micro-competition, between competitors within a micro-competition, and across multiple micro-competitions. These variations arise from the interplay between the unfolding competitive arena and the implementation of each firm's strategic portfolio. We develop a conceptual framework that makes four contributions to: relational competition; reconceptualizing action and response; elaborating on the awarenessmotivation-capability framework within competitive dynamics; and the recursive dynamic by which implementing strategy inside firms shapes, and is shaped by, the competitive arena. Managerial Summary: Competition is often seen as war: "attack," "retaliation," and "dethronement." Yet competition can also be relational, incorporating collaboration and reciprocity. We show these dynamics in a syndicated financial market, reinsurance, where multiple competitors get the same price for a share of the same deal. Our competitors have rivalrous motivations to win business and relational motivations to ensure buoyant pricing, maintain market health, and enable long-standing client relationships to persist. These motivations are grounded in the strategizing practices with which firms implement their strategic portfolios and compete on deals. Competitors' rivalrous or relational motivations are highly dynamic, shifting throughout the competition on any deal and *The first and second authors contributed equally to this publication.

show abstract

Section: Discussion and Contributionsmentioning

confidence: 99%

Section: Research Context and Methodsmentioning

confidence: 99%

Section: Data Collection and Analysismentioning

confidence: 99%

See 1 more Smart Citation

Toward a social practice theory of relational competing

Jarzabkowski

Bednarek

2017

Strategic Management Journal

View full text Add to dashboard Cite

show abstract

“…We will thus look at catastrophe and natural hazard insurance contracts and programmes from the point of view of a public policymaker who seeks to structure the insurance/reinsurance market to minimize the total cost of purchasing insurance against a catastrophic loss. Boyer and Dupont-Courtade (2013) show that reinsurance programmes are mostly structured in layers (see also Hurlimann, 2003;Ladoucette and Teugels, 2006) -see Fig. 10 for an example of a reinsurance programme.…”

Section: Public Policy and Insurancementioning

confidence: 97%

Insuring catastrophes and the role of governments

Boyer¹,

Nyce

2013

Nat. Hazards Earth Syst. Sci.

View full text Add to dashboard Cite

In this paper we model the cost of providing insurance coverage against natural and man-made hazards. We propose an insurance market model that explains (1) the use of reinsurance to help finance the cost of catastrophic events and (2) the implicit (or explicit) presence of government entities acting as (re)insurers of last resort. Using an economic model, we show how insurance programmes should be designed to cover the losses due to a possible catastrophic natural hazard. Our results show that the optimal structure of a reinsurance programme minimizes the cost of offering insurance protection. We also show how government intervention can reduce the cost of insurance against natural catastrophes and increase policyholders' welfare. Our paper therefore offers public policy implications as to the role and presence of government as an insurer of last resort and the minimum insurance premium necessary to cover the cost of catastrophic events

show abstract

“…They concluded that the likelihood of primary insurer's downgrade increases with its reinsurance default risk exposure from downgraded insurers and the negative effects also spill over to insurers that are not directly exposed to the credit risk of downgrade reinsurers. Boyer and Courtade (2013) examined the structure of the reinsurance market. They observed that reinsurance treaties during the period 2005-2010 had generally become more complex over the year and a unique liner pattern was found by a line of insurance for distribution of the quotes.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial performance analysis of GIC Re

Mukherjee

Gorai

Sen

2020

XJM

View full text Add to dashboard Cite

Purpose This study aims to analyse the following: first, the financial performance of General Insurance Re (GIC Re) using performance ratios (PRs); second, the uniformity of different financial performance indicators of GIC Re; third, the internal growth capacity of GIC Re; and finally, the likelihood of GIC Re going into financial distress. Design/methodology/approach As a sample, GIC Re, the lion shareholder in Indian Reinsurance Industry has been considered in the present study. All the necessary data have been extracted from the secondary sources over a time period of 16 years. The financial performance of GIC Re is assessed using five standard ratios, and the uniformity of different financial performance indicators of GIC Re has been examined using Kendall’s Coefficient of Concordance (W). To assess the internal growth capacity of GIC Re internal growth rate has been used, and the likelihood of GIC Re going into financial distress is analysed using multivariate discriminant approach, namely, modified Altman’s Z-score model and logit analysis technique, namely, Ohlson’s O-score model. Findings The results exhibit that financial performance of GIC Re is somewhat satisfactory over a few considerable areas. However, no notable degree of uniformity has been observed amongst the varied financial performance indicators, namely, performance ratio, expense ratio, return on assets, risk retention ratio and combined ratio of GIC Re. The results also reveal GIC Re is lacking ability of growing internally. Moreover, there remains a significant possibility of GIC Re going into financial distress in the near future and so. Originality/value This study is one of the first empirical research studies in India that examines the financial performance of GIC Re from different perspectives.

show abstract

The Market for Reinsurance

Cited by 3 publications

References 68 publications

Toward a social practice theory of relational competing

Toward a social practice theory of relational competing

Insuring catastrophes and the role of governments

Financial performance analysis of GIC Re

Contact Info

Product

Resources

About