Transcript Table 6
Group 6: Insurance David Durbin Craig Fox Paul Freeman Carl Hedde Howard Kunreuther Joan Lamm Tenant Alexander Murmann Mark Pauly Kent Smetters Kim Staking Elke Weber 1 Dynamics of Insurance and Reinsurance Markets Under Conditions of Ambiguity * Demand for insurance & reinsurance * Supply of insurance & reinsurance * Market learning 2 Markets with Ambiguity * Terrorism * Environmental hazards * Developing nations 3 Participants * Insurers/Reinsurers * Behavioral Decision Theorists * Economists * Legal Scholars/Lawyers * Government representatives/regulators * Financial institutions * Experts in historical insurance crises 4 Demand for insurance & reinsurance * What factors influence consumers’ perception of risk, and their attitudes toward ambiguity? * What factors influence institutional investors’ willingness to purchase catastrophe bonds? * Why do so few individuals and businesses in developing countries purchase insurance? 5 Supply of insurance & reinsurance * Why are insurers reluctant to underwrite novel risks following a catastrophe? * Are there relevant principal-agent issues? * What are the legal constraints? * How can insurance companies more effectively hedge the risks they face? * What is the appropriate role of Gov’t? 6 Market Learning * Why does the market price of insurance typically rise precipitously following EE, then fall off? * In what ways can we accelerate learning so that markets reach equilibrium more rapidly? * Is there potential for learning across crises? Do cycles get shorter? 7 Consensus of Group Locate conference in Bermuda! 8