2007 Fiscal Year Final Research Report Summary
Reinsurance as a corporate finance; rethinking of traditional studies on reinsurance
| Project/Area Number |
18530326
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Commerce
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| Research Institution | Hitotsubashi University |
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Principal Investigator |
YONEYAMA Takau Hitotsubashi University, Graduate School of Commerce and Management, Professor (00175019)
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| Project Period (FY) |
2006 – 2007
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| Keywords | reinsurance / life reinsurance / financing / Alternative Risk Transfer / Capital of insurance company / ALM |
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| Research Abstract |
In the study on insurance, many researchers have usually recognized that it is a measure for averaging of insurance risks and enlarging of the limit of retention for primary insurers. It is true, but we can rethink the role of reinsurance after the conceptual revolution on enterprise value and the development of financial engineering in business risk management.
In the previous studies, every researcher often discusses which is more competitive between reinsurance and Alternative risk transfer, ART. Some emphasized the limit of reinsurance contract. However reinsurance market has been still active and it give consumers stable risk transfer service by using its old technology. At least, ART is far from pushing out the old technology.
On these backgrounds, this study focused on the other functions of reinsurance. Reinsurance is not only a measure of diversification of risk but also a technique of financing.
We selected the life reinsurance, and we discussed why Japanese larger life assurance companies used the life reinsurance program so little.
Helped by interviews for insurance person, we concluded as follows. When globalization of insurance regulation developed, Japanese large life assurance companies will recognize the importance of life reinsurance arrangement for achieving enterprise risk management.
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