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How does concept of risk pooling apply to insurance

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Reference no: EM133465946

Read the article "In Nature's Casino" by Michael Lewis. Discuss the following points and how they relate to the examples in the article. Be specific and cite from the article whenever possible.

What is a CAT bond.

How does the concept of risk pooling apply to insurance; how does it apply to reinsurance, and to the capital market.

The role of heuristics in understanding catastrophe risk.

Your thoughts on the future of financing "tail risk" (e.g., natural disaster, financial disaster, pandemic, war, etc.)

Reference no: EM133465946

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