Jump to ContentJump to Main Navigation
Making a Market for Acts of GodThe Practice of Risk Trading in the Global Reinsurance Industry$
Users without a subscription are not able to see the full content.

Paula Jarzabkowski, Rebecca Bednarek, and Paul Spee

Print publication date: 2015

Print ISBN-13: 9780199664764

Published to Oxford Scholarship Online: April 2015

DOI: 10.1093/acprof:oso/9780199664764.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 28 October 2020

Transforming Disasters into Tradable Deals

Transforming Disasters into Tradable Deals

(p.59) 3 Transforming Disasters into Tradable Deals
Making a Market for Acts of God

Paula Jarzabkowski

Rebecca Bednarek

Paul Spee

Oxford University Press

Chapter 3 demonstrates how the risk of disasters is turned into financial deals that can be traded within the reinsurance market. We show how underwriters calculate the risk on deals using widespread statistical models (technicalizing) even as they acknowledge that these models are flawed, so supplementing their evaluation with their individual knowledge of the physical properties of such risks (contextualizing), which they factor into their evaluation of price. This chapter focuses on U.S. Property Catastrophe deals, which are the dominant and most modelable type of reinsurance risk. We bring deal evaluation to life by following John, a U.S. Property underwriter, from the conferences where he meets clients with risk portfolios as diverse as Californian earthquake and bushfire, Midwest tornado, and Gulf of Mexico hurricane, to his office in Bermuda where he evaluates these risks and makes decisions to use his firm’s capital to cover them.

Keywords:   financial market, risk transfer, social practice theory, relationality, statistical models, calculation, evaluation, Property Catastrophe risk, marketization, global ethnography

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .