Risk sharing

Unless otherwise defined, a special business practice of the insurance industry, and here again especially of reinsurers. It consists of issuing – usually through special purpose vehicles – high-yield catastrophe bonds that spread the risks assumed by the reinsurer among the subscribers of the corresponding securities. If the loss occurs, the holders of the securitized securities contribute to the reinsurer’s benefit with their share, which is usually graded according to the waterfall principle. – See embedded value securitization, catastrophe bonds, retrocession, single hedge fund, terrorism securities, XXXinsurance-linked securities, forced convertible bond.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/