Paula Jarzabkowski, Rebecca Bednarek, and Paul Spee
- Published in print:
- 2015
- Published Online:
- April 2015
- ISBN:
- 9780199664764
- eISBN:
- 9780191811487
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199664764.003.0007
- Subject:
- Business and Management, Finance, Accounting, and Banking, International Business
Chapter 7 offers a novel theoretical framework for understanding market-making, based on relationality, nested relationality, and relational presence. Relationality occurs between actors, their ...
More
Chapter 7 offers a novel theoretical framework for understanding market-making, based on relationality, nested relationality, and relational presence. Relationality occurs between actors, their practices and the collective practice of the market. Nested relationality captures the interdependent practice of a global market, coordinating individuals from different geographic locations and different firms, writing different types of risk, with different calculative practices into a coherent pattern of trading. Relational presence refers to the social resources that connect and coordinate underwriters around the world, despite a lack of direct or real-time interaction. This theory of market making allows practice scholars to address big questions about market practice, including some of the questions about financial collapse in other financial markets. The chapter concludes with a strong message of caution for the reinsurance market about the potential for social and economic collapse as the multiple, small, taken-for-granted, and critically interrelated practices of this market are eroded.Less
Chapter 7 offers a novel theoretical framework for understanding market-making, based on relationality, nested relationality, and relational presence. Relationality occurs between actors, their practices and the collective practice of the market. Nested relationality captures the interdependent practice of a global market, coordinating individuals from different geographic locations and different firms, writing different types of risk, with different calculative practices into a coherent pattern of trading. Relational presence refers to the social resources that connect and coordinate underwriters around the world, despite a lack of direct or real-time interaction. This theory of market making allows practice scholars to address big questions about market practice, including some of the questions about financial collapse in other financial markets. The chapter concludes with a strong message of caution for the reinsurance market about the potential for social and economic collapse as the multiple, small, taken-for-granted, and critically interrelated practices of this market are eroded.
Paula Jarzabkowski, Rebecca Bednarek, and Paul Spee
- Published in print:
- 2015
- Published Online:
- April 2015
- ISBN:
- 9780199664764
- eISBN:
- 9780191811487
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199664764.003.0001
- Subject:
- Business and Management, Finance, Accounting, and Banking, International Business
Chapter 1 explains the structure of, and key players in, the reinsurance market; the insurers (cedents), reinsurers, and brokers. This book focuses on the reinsurers who, despite being competitors, ...
More
Chapter 1 explains the structure of, and key players in, the reinsurance market; the insurers (cedents), reinsurers, and brokers. This book focuses on the reinsurers who, despite being competitors, collectively bear the risk of unpredictable disasters, which is transferred to them from insurance companies around the world. The chapter particularly examines the practice of reinsurance underwriters who evaluate, price and trade these risks from their hubs in Lloyd’s of London, Bermuda, Continental Europe, and Singapore. This chapter opens with an evocative account of the devastating Tohoku earthquake and tsunami, 2011, as an example of the unpredictable disasters that reinsurers underwrite. The chapter then explains the basic principles of the way that this market works and how risk is traded. The remainder of the chapter introduces our social practice theory approach and the novel framework of making markets through relationality, nested relationality and relational presence that is developed in this book.Less
Chapter 1 explains the structure of, and key players in, the reinsurance market; the insurers (cedents), reinsurers, and brokers. This book focuses on the reinsurers who, despite being competitors, collectively bear the risk of unpredictable disasters, which is transferred to them from insurance companies around the world. The chapter particularly examines the practice of reinsurance underwriters who evaluate, price and trade these risks from their hubs in Lloyd’s of London, Bermuda, Continental Europe, and Singapore. This chapter opens with an evocative account of the devastating Tohoku earthquake and tsunami, 2011, as an example of the unpredictable disasters that reinsurers underwrite. The chapter then explains the basic principles of the way that this market works and how risk is traded. The remainder of the chapter introduces our social practice theory approach and the novel framework of making markets through relationality, nested relationality and relational presence that is developed in this book.
