Pricing Default-Risky Cat Bonds with Moral Hazard and Basis Risk

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Pricing in the Primary Market for Cat Bonds: New Empirical Evidence (2016, unknown): “However, recent work by econometricians has revealed that the well-known HAC covariance matrix of Newey and West (1987) is asymptotically consistent and exhibits preferable finite sample properties under very general conditions when applied in the sense of an “equal spacing estimator”, i.”
How Basis Risk and Spatiotemporal Adverse Selection Influence Demand for Index Insurance: Evidence from Northern Kenya (2014, background): “…gains offered by index insurance (or hedges) to the insurance market and the inverse relationships between basis risk and moral hazard, and between basis risk and demand have also been discussed in regards to reinsurance and catastrophe bonds (e.g., Doherty & Richter 2002; Lee & Yu 2002).”
Convergence of Insurance and Financial Markets: Hybrid and Securitized Risk Transfer Solutions (2008, unknown): “…there is also a growing literature on mathematical/financial pricing models for insurance derivatives, we do not cover it here because it is outside the scope of the present paper (e.g., Aase 2001, Bakshi and Madan 2002, Grundl and Schmeiser 2002, Lee and Yu 2002, 2007, and Egami and Young 2008).”