Traps insuerance markets
保险业常用词汇中英文对照
保险业常用词汇中英文对照第一部分:保险承保业务1、一般保险原理保险 insurance保险业 insurance industry保险业务结构 business structures保险业主体 bodies in Insurance Industry被保险人 insured理赔claim settlement承保利润微薄 underwriting profit is slight承保能力insurance capacity承保业务 underwriting operation未决赔款储备金 reserve IBRN大数法则 Law of Large Numbers营业额turnover市场缺陷 market imperfections社会保险social insurance个人代理人 personal agent银行保险 bank insurance直销 straight pin佣金 brokerage手续费 commission charges再保险 reinsurance2、财产保险财产保险property insurance长尾long-tail长期护理保险long—term care insurance短尾short-tail综合赔付率combined ratio自留retention车险 auto insurance财产保险 property insurance责任保险 liability insurance农业保险 agricultural insurance巨灾保险 catastrophe insurance意外伤害保险 casualty accident insurance3、寿险词汇变额寿险 variable life insurance长寿保险insurance on last survivor定期寿险term insurance合同储蓄机构 contractual saving institutions红利 dividend疾病保险sickness insurance简易险 industrial insurance健康保险health insurance巨额医药费保险major medical" insurance policy可变保费寿险 flexible—premium life insurance利差损 interest spread risk利率敏感型产品 interest—sensitive whole life赔期/期限indemnity period/limit普通寿险 ordinary life insurance人寿保险life insurance预定利率市场化 Market-based Assumed Interest Rate 团险group insurance限期缴费终身寿险 limited—payment whole life insurance 养老保险endowment insurance医疗保险insurance for medical care医疗费用保险medical expense insurance终身寿险whole life insurance准备金reserve伤残收入保险 disability income insurance失能 incapacity可变万能寿险 Variable-universal life insurance可变年金 Variable annuity评估价值 Appraisal Value内含价值 Embeded Value新业务价值 Value of New Business税收优惠 tax break税收递延型养老保险Deferred tax endowment insurance 大病医疗保险Large quantity medical insurance分红保险 Participating Insurance传统保险 traditional insurance理财型保险 financial planning oriented insurance 投资连结寿险 unit—linked life insurance4、保险偿付能力风险资本要求risk—based capital固定最低成本要求 fixed minimum capital requirement 保险偿付能力监管insurance solvency regulation保险监管信息系统 Insurance Regulatory Information System财务分析跟踪系统 Financial Analysis Tracking System 偿付能力 Solvency偿付能力不足 insolvent认可资产 admissible assets第二部分保险资产管理1、行业主体和监管保险资产管理 insurance asset management保险法insurance law保险资产管理公司 insurance asset management company中国人保集团 People's Insurance Company of China(简称 PICC)中国人保资产管理公司 PICC Asset Management Company Limited慕尼黑再保险资产管理公司 Munich ERGO Asset Management GmbH(简称MEAG)中国保监会 China Insurance Regulatory Commission(简称CIRC)保险投资“新政” innovation policies in insurance investment可投资资产 investable asset投资公司法案 Investment Company Act2、委托受托关系委托人 client受托人 trustee委托管理 mandate绝对收益 absolute return相对收益 relative return3、组合管理大类资产配置 assets allocation战略资产配置 Strategic Assets Allocation(简称SAA)战术资产配置 Tactic Assets Allocation(简称TAA)流动性管理 liquidity management资产负债管理 Asset-Liability Management(简称ALM)久期匹配 duration matching现金流匹配 cash flow matching一般账户 general account独立账户 separate account4、类别投资固定收益投资 fixed-income investment持有到期类资产 held-to-maturity asset交易类资产 trading asset可供出售类资产 asset available for sale股票投资 equity investment基金投资 fund investment另类投资 alternative investment境外投资 overseas investment基础设施债权计划 infrastructure debt investment plan 未上市企业股权投资 private equity investment不动产投资 real estate investment利率互换 Interest Rate Swap(简称IRS)均值一方差分析 the mean-variance method5、第三方业务财富管理wealth management第三方投资管理 the third-party asset management企业年金 occupational annuity养老金 pension集合投资产品 collective investment fund。
再保险术语
再保险术语1、再保险市场再保险reinsurance分保保险人和再保险人将其承担的保险业务的部分或全部转移给其他保险人或再保险人的保险。
原保险primary insurance:original insurance相对于再保险而言的保险,由投保人与保险人直接订立保险合同而建立保险关系的保险。
再保险市场reinsurance market再保险经济关系的总和。
原保险市场primary insurance market原保险经济关系的总和。
转分保retrocession分保接受人将其接受的业务部分或全部转移给其他保险人或再保险人的再保险。
互惠再保险reciprocal reinsurance互惠交换reciprocal exchange交换分保互惠分保有再保险关系的保险人之间交换业务,一方保险人向另一方保险人分出业务,又从另一方保险人处获取分入业务的再保险。
首席承保人leading underwriter在共保或再保险合同中,负责商洽各项承保条件的保险公司。
原保险人primary insurer; original insurer直接保险人direct insurer。
相对于再保险人而言,直接与投保人订立保险合同的保险人。
分出公司ceding company;cedent在再保险交易中分出业务的公司或其他组织。
再保险人reinsurer分入公司再保险接受人分保接受人在再保险交易中接受业务的公司或其他组织。
再保险共保体reinsurance pool再保险集团reinsurance group再保险联盟reinsurance association再保险联合体(辛迪加) reinsurance syndicate由若干保险公司组成的统一接受和管理再保险业务,并将业务在成员公司中按约定分摊的联合组织。
转分保人retrocedant转分入转分保分出公司转分保交易中分出业务的公司或其他组织。
转分保接受人retrocessionaire转分接受人转分保交易中接受业务的公司或其他组织。
农业技术英语作文
农业技术英语作文Agricultural Technology: The Key to Sustainable Farming。
Agriculture has been the backbone of human civilization since time immemorial. As the world population continues to grow, the demand for food is increasing at an unprecedented rate. However, the land available for agriculture islimited and the soil is becoming less fertile due to excessive use of chemical fertilizers and pesticides. In such a scenario, agricultural technology is the key to sustainable farming.Agricultural technology refers to the use of scientific methods and tools to improve agricultural productivity and efficiency. It encompasses a wide range of practices, including crop breeding, soil management, water management, pest control, and post-harvest management. By adopting the latest agricultural technologies, farmers can increasetheir yield, reduce their costs, and minimize their impact on the environment.Crop breeding is one of the most important aspects of agricultural technology. By developing new crop varieties that are resistant to pests and diseases, drought-tolerant, and high-yielding, farmers can increase their productivity and profitability. The use of genetic engineering has revolutionized crop breeding, allowing scientists to transfer desirable traits from one plant to another and create crops that are better suited to specific growing conditions.Soil management is another critical aspect of agricultural technology. Soil is the foundation of agriculture, and its health is essential for the growth of crops. By adopting practices such as conservation tillage, crop rotation, and cover cropping, farmers can improve soil health, reduce erosion, and conserve water. In addition, the use of precision agriculture technologies such as GPS-guided tractors and drones can help farmers optimize their use of fertilizers and pesticides, reducing waste and minimizing environmental impact.Water management is also a crucial area of agricultural technology. As water resources become scarcer, farmers need to adopt practices that conserve water and improveirrigation efficiency. Technologies such as drip irrigation, soil moisture sensors, and weather forecasting can help farmers optimize their water use, reduce water waste, and minimize the risk of crop failure due to drought.Pest control is another area where agricultural technology can make a significant difference. Traditional pest control methods rely on the use of chemical pesticides, which can be harmful to the environment and human health. However, by adopting integrated pest management (IPM) practices, farmers can reduce their reliance on chemical pesticides and use a combination of biological, cultural, and chemical methods to control pests. IPM practicesinclude crop rotation, biological control, and the use of pheromone traps.Post-harvest management is the final stage ofagricultural technology. After crops are harvested, they need to be stored, processed, and transported to markets.By adopting modern post-harvest technologies, such as cold storage, vacuum packaging, and irradiation, farmers can extend the shelf life of their crops, reduce post-harvest losses, and ensure that their produce reaches the market in good condition.In conclusion, agricultural technology is the key to sustainable farming. By adopting the latest technologies, farmers can increase their productivity, reduce their costs, and minimize their impact on the environment. However, the adoption of agricultural technology requires investment in research and development, as well as training and education for farmers. Governments, international organizations, and private companies need to work together to promote the adoption of agricultural technology and ensure that it benefits both farmers and consumers.。
英语翻译三大原则
英语翻译三大原则英语与汉语在表达习惯上有很多不同之处,这就使得英语学习者在英汉互译时容易犯搭配不当、结构不当等错误。
由此,笔者总结出了翻译的十大原则,来帮助大家纠正在英汉互译中容易犯的一些错误。
本期,笔者首先与大家探讨一下英译汉的三大原则。
一、动宾连接原则在英译汉时,有许多翻译错误来源于动宾短语的翻译不当。
许多人在翻译时常常按照原文的顺序——从左到右来确定动宾短语的翻译,即先确定动词的含义和翻译,再确定宾语的含义和翻译。
但事实上,这种译法很容易造成译文的动宾短语搭配不当。
我们来看一个例句:1. We must avoid these stupid, short-sighted traps and constantly strive for an open communications system with objective information.我们必须打破这些愚蠢而又短视的禁锢,坚持不懈地致力于建立一个公开的沟通系统,确保信息客观真实。
解析:在这个例句中,“avoid ”和“ traps”构成了一组动宾短语,很多考生将“ avoid ”翻译成“避免”,将“ traps”翻译成“陷阱” ,这样译文就变成了“避免陷阱”,这显然不符合汉语习惯。
那我们该如何翻译这个动宾短语呢?可以试着先确定宾语“ traps”的含义,然后根据原文意思选择合适的动词与之搭配。
考生如果将宾语“ traps”译为“陷阱”,可以把动词“ avoid ”译为“绕开”;如果将宾语“traps ”译成“禁锢” 动词“ avoid ”可以译为“打破”或“冲破”。
由此可知,在翻译动宾短语时,考生应该首先根据上下文确定宾语的含义,然后再根据原文的意思选择适当的动词与之搭配——这就是笔者总结的“动宾连接原则” 。
为了让大家更深刻地理解这一原则,下面再举一例:2. The power of markets and new technology, once unleashed, would address most of the world 's ills.市场和新技术的能量一旦得到释放,将能够解决世界上的大多数问题。
银行资产分类词汇
acetate yarn?醋酸纤维acetic acid?醋酸acetone?丙酮acetyl chemicals?乙酰(xian-1)化学品acrylonitrile?丙烯腈amorphouspolyolefins?无结晶聚烯烃benzene?苯biodegradablepolyesters?生物裂解聚酯butadiene?丁烷butylene?丁烯cellulose acetate fiber ?醋酸纤维coatings and paint raw materials?涂料和油漆原料copolyesters?共聚酯custom chemicals ?专门定购化学品Eastotac?树脂engineering compounded plastics?工程复合塑料ethane?乙烷ethylanmine?乙胺ethylene?乙烯ethylene glycol(MEG)?乙二醇film?薄膜filter tow?过滤用长丝fine chemicals ?精细化学品foodingredients?食品添加剂glycol-modified polyethylene terephthalate(PETG)?醇化聚酯heavy-gauge sheeting?厚板材
on-site inspection?现场检查on-sitevisit?现场访问out-of-area loan?外地信贷outstandingbalance?未清偿余额overdue?逾期pass, overdue, idle & bad loans(POIB)?一逾两呆past due loans?逾期贷款pending factor?未决因素poorly structuredloan?结构不合理贷款problem loans?有问题贷款Profit and loss?损益(表)provision?准备金provisioning?准备金提取quick ratio?速动比率rehabilitation?repaymentschedule?还款计划restructured loans?重组贷款risk-weightedasset?风险加权资产ROCA?洛卡评级法roll-overs?展期securityenforcement?行使抵押权side agreement?附件special mentionasset?特别提及资产special reserve?特殊准备金specific reserve?专项准备金substandardassets?次级资产suspense account?挂帐term loan?定期贷款to credit?贷记todebit?借记trading on equity?财务杠杆;举债经营troubled loan?有问题贷款turnoverratio?周转比率weak loan?低质量贷款work outproblem?核销有问题write-off?冲销write-up ?(贷款)批评报告
托福听力满分考生分享平时和应试做笔记心得经验
托福听力满分考生分享平时和应试做笔记心得经验托福听力满分考生分享平时和应试做笔记心得经验托福听力做笔记经验分享:平时笔记平日里只要是听一些比较有用的东西,我都会做记录。
跟大部分人一样,我有注意力涣散的毛病。
不记录会跑神。
笔记的好处:第一注意力集中了,思路更清晰,细节更注意。
第二,内容留存,方便回顾。
第三,久了就知道什么地方是关键,重点,该记。
第三点很重要,直接关系到应试笔记。
大家都听过这样的劝告,听力要记笔记,要记关键信息,要记细节,要记…… 这些劝告有多抽象,每一个考生都应该深有感悟。
总结一句,我有更抽象的说法,记题目会问到的。
托福是为学生准备好大学课程,不是为难大家。
所以托福会问的内容自然是你听完之后应该学到的内容。
如果我们不是抱着做题的心态,而是学习的心态,是不是就更容易知道该记什么?应试刷题时,目的角度不同,技巧可培养,但是你体会不到为什么,就容易流于形式。
这是学习习惯,平时要注意养成。
托福听力做笔记经验分享:应试笔记应试笔记有技巧,类似于口译笔记。
关键内容,有提醒的关键词,要会自己可识别的缩写;纸张对折成几条,提纲式记录,用符号表示某些趋势。
这些是技巧,很容易成手。
记过之后,做题时候会不会看?我个人很少回头看。
基本上我考试笔记的目的和平时是很相似的。
落到笔头上,思路更清晰。
但是有几个点,是我在练习之后会提醒自己注意的。
起始时教授讲的目的,要记清楚,做题前要回头看,因为整篇lecture都围绕着这句话;细节题,要回头去确认。
2020托福听力练习:选民不会背竞选演讲所影响Donald Trump hasn't been running the most traditional campaign. And it's not just the unfiltered tweets. "He's neglecting campaigning full stop." Thomas Wood, an assistant professor of political science at Ohio State. "He's had about half as many public events as his opponent."Wood's own campaign experience was with theRomney/Ryan ticket back in 2012. Every night, the campaign surveyed thousands of voters... 64,000 over all... asking them how they felt about the politicians, after a local visit. That is, if the voters actually knew about the visit."Instead of seeing candidate X visiting somewhere in Pensacola they're now seeing candidate X visit somewhere in their local market. And it's not really filtering through to that many folks that the visit was there—you know one event sort of looks like the other. They all sort of blend into each other. It'shard to make it clear to the person who's just watching the evening news that this was a visit in your local marketplace."In other words, visits didn't even register for most locals or those in adjacent markets. And the voters' opinions of the candidates went up just a measly couple percent after local visits—before fading back to baseline a few days later. So despite the huge investment of time and money, the local campaign stops were pretty worthless—at least from a numbers standpoint. The findings are in the Annals of the American Academy of Political and Social Science.As for this election season—any advice for the noncampaigning candidate? "I would provide advice that has nothing to do with his frequency of visits. I'd be providing advice as to how one ports oneself with the national press, try to earn some goodwill. I guessjust being polite. I would say that Trump's sort of lethargic process of campaigning is probably the least of his worries." Better, he says, to just spend more time fundraising. To throw more cash at things that really work: like get-out-the-vote campaigns, and ads. Then again…Twitter's free.唐纳德·特朗普没有用最传统的竞选方法组织竞选活动。
笔译常用词汇(外贸金融)
笔译常用词汇(外贸金融)保险箱服务safe deposit box services补偿贸易compensation trade长期低息贷款long-term, low-interest loan 炒股speculate in the stock market惩罚性关税punitive tariffs出口贸易export trade出口信贷export credit出口总值total export value初级产品生产国primary producing country 从事贸易engage in trade存款准备金率deposit-reserve ratio定期存款time deposit对销贸易counter trade多边贸易multilateral trade恶性通货膨胀galloping inflation反洗钱制度anti-money laundering system防范金融风险guard against financial risks 分税制revenue-sharing system付款条件payment terms股东持股比例equity of stock holdings股市投资stock market investment挂牌汇率nominal rate国际金融危机the world financial crisis国库券还本付息amortize state treasury bond合格境内机构投资者qualified domestic institutional investor (QDII)合格境外机构投资者qualified foreign institutional investor (QFII)合资企业joint venture互惠贸易协定reciprocal trade agreement黄金储备gold reserve汇率风险exchange risks汇率浮动与风险管理fluctuations in exchange rates and risk management活期存款demand deposit积极的财政政策proactive fiscal policy加快金融改革speed up the financial reform 建立正常贸易关系establish normal trade relations借贷资本loan capital 金融寡头financial magnates金融机构financial institutions金融监管financial oversight and management金融债券financial bonds紧缩银根tight money supply经济互补性economic complementarity经济全球化economic globalization经济腾飞economic takeoff经济总量economic aggregate居民消费价格指数consumer price index (CPI)居于世界前列rank among the world’s leading countries可行性研究feasibility study控股股东controlling shareholder劳动密集型产品labor-intensive products贸易报复措施trade retaliation measures贸易壁垒trade barrier贸易互惠reciprocity in trade贸易摩擦trade friction贸易条件terms of trade贸易制裁trade sanction牛市bull market商务部Ministry of Commerce涉外经济foreign-related business生产价格指数production price index (PPI) 双边会谈bilateral negotiations铁饭碗iron rice bowl; a secure job外汇储备foreign currency reserves外汇牌价foreign exchange quotation外贸工作者foreign trade personnel外贸逆差a foreign trade deficit外贸自营权power to engage in foreign trade 外商独资银行wholly foreign-funded bank 外向型企业export-oriented enterprise外交保险公司foreign-funded insurance company外资企业overseas-funded enterprise完全市场经济地位full market economy status稳健的货币政策prudent monetary policy信用评级credit rating熊市bear market验资证明capital verification certificate一次性付款lump-sum payment议付单据negotiating documents易货贸易barter trade赢得市场gain a large share of the market佣金率rate of commission增值税退税value-added tax rebates债券市场bond market债券收益bond yield政府债券government bonds中长期贷款medium and long credit中国保险监督管理委员会China Insurance Regulatory Commission中国银行业监督管理委员会China Banking Regulatory Commission中国证券监督管理委员会China Securities Regulatory Commission主板市场main board of the stock market主权财富基金sovereign wealth fund注册资金registered capital专控商品commodity under special government control转口贸易entrepot trade资本密集或知识密集型产品capital-or knowledge-intensive products资本外逃flight of capital资产保值增值maintain and increase the value of assets资产重组assets reorganization自动提款机automated teller machine (ATM) 自由贸易区free trade zone/area“走出去”、“引进来”战略strategy of “going global”and “bringing in”最大债权国biggest creditorsabsorb idle fund 吸引游资a business incubator 企业孵化器accounting fraud 财务作假案;假案accumulated deficit 累计赤字after-sale service 售后服务after-tax profit 税后利润anti-inflation measures 制止通货膨胀措施anti-monopoly law 反垄断法auditing sacandals 假账丑闻bank discount 票据贴现Black Monday 黑色星期一blue chip 绩优股bonded area 保税区bottom wholesale price 批发底价business cycle 商业周期business lending 商业贷款cargo handing capacity 货物吞吐量cash dividend 现金股利cash on delivery (COD) 货到付款ceiling price 最高限价chamber of commerce 商会clearance sale 清仓销售closing price 收盘价common stock 普通股compensation trade 补偿贸易concessionary loans 优惠贷款corporate bond 公司债券corporate identity 企业标识cost of living index 生活成本指数currency appreciation 货币升值customs barrier; tariff waff关税壁垒Doha Round 多哈回合dot-com boom 高科技公司(股票)引起的繁荣double-digit inflation 两位数通货膨胀率(指一个国家的通货膨胀年率超过10%)double –entry budget 复式预算Dow-Jones Industrial Average 道琼斯工业股票平均指数downstream product 下游产品durable goods 耐用产品export customs declaration 出口申报export incentives 出口刺激export licensing system 出口许可证制度favorable balance of trade/trade surplus 贸易顺差financial (industry/sector) rescue plan 金融救援计划financial statement 财务报表foreign exchange reserve 外汇储备Goldman Sachs 高盛(集团)公司(美)government securities 公债holding company 控股公司hot money from abroad 国际游资import quota 进口配额imports of merchandise and services 商品和劳务进口inflation-proof deposit保值储蓄inflation-ridden country通货膨胀居高不下的国家insurance broker保险经纪人intangible assets无形资产interest-free loan 无息贷款international financial center 国际金融中心investment ratio 投资比例IPO (Initial Public Offerings) 发行原始股junk bond 垃圾债券line of business 业务范围listed company 上市公司listed shares (stock) 上市股票market access/entry市场准入merger and acquisition (M&A) 并购money laundering 洗钱money supply 货币供应量National Association of Securities Dealers Automated Quotation (NASDAQ) 美国纳斯达克指数National Council for US-China Trade 美中贸易委员会New York Stock Exchange (NYSE) 纽约证券交易所online share trading 在线股票交易portfolio investment 证券投资port of destination 目的口岸preferential loan 优惠贷款preferred stock 优先股price-curbing policy 抑价政策primary goods 初级商品property dividend 财产股利protective tariff 保护性关税ration-free goods 敞开供应的商品reciprocal trade 互惠贸易retaliatory tafiff 报复性关税return on investment 投资回报risk capital 风险投资shock method 休克疗法Standard & Poor’s Index (美国证券)标准普尔指数stock market crash 股市暴跌stock market quotation 股市行情stock option 认股权stock sinks below the IPO price 破发subprime mortgage 次级房贷supply-demand imbalance 供求失衡switch trade 转手贸易tax-free zone 免税区time deposit 定期存款toll-free service 免费服务total volume of imports and exports 进出口总额trade dispute 贸易争端trade in goods 货物贸易trade in services 服务贸易trade liberatlization 贸易自由化trade partner 贸易伙伴trade protectionism 贸易保护主义trade protocol 贸易议定书transnational corporation 跨国公司transnational operation 跨国经营unfavorable balance of trade/trade deficit 贸易逆差upstream product 上游产品US Federal Reserve Board 美国联邦储备委员会US Securities and Exchange Commission 美国证券交易委员会venture capital 风险资本voucher of clearing 结算凭证Wall Street magnate 华尔街财阀warranty period 商品保修期win the bid/tender 中标World Economic Forum 世界经济论坛(达沃斯会议)year-end report 年终报告zero tariff treatment 零关税待遇。
金融英语词汇
金融英语词汇a flat percentage rate of income 统一比率的所得税税率。
a long position 多头部位,利多形势。
a long position 多头寸;买进的期货合同。
a put option on a debt security 债务证券的卖出期权。
a sales slip 签购单据,售货清单。
a short position 空头部位,短缺头寸。
a short position 空头;卖出的期货合同。
a tax return 税务申报表。
abnormal depreciation 特别折旧。
abnormal spoilage 非正常损坏。
aboriginal cost 原始成本。
acceptance bank 票据承兑行acceptance method 承兑方式。
acceptance risks 承兑风险。
accepting bank 承兑银行accessory risks 附加保险,附加险。
accident insurance 意外保险。
(不包括海上,火灾和人寿保险)。
accommodation of funds 资金融通。
accompany vt.附带,伴随,陪同account charges 账户费用account current (A/C,a/c) 往来帐户account number (A/N) 帐号account statement 帐户清单accounting exposure 会计风险。
accounting risks 会计风险。
accounting value 帐面价值。
accounts of assured 保险帐户。
accrued bond interest 应计债券利息accrued depreciation 应计折旧。
accrued dividend 应计股利acknowledgement of declaration (under op 预约保险申报确认书。
旅游踩雷的作文英语
旅游踩雷的作文英语Traveling is always an exciting and enriching experience. However, sometimes things don't go as planned and we end up stepping on a few landmines during our journey. These unexpected mishaps can turn our dream vacation into a nightmare, but they also provide us with valuable lessons and unforgettable memories.One of the most common pitfalls of traveling is encountering bad weather. I remember a trip to the tropical paradise of Bali, where I was looking forward to sunny days spent lounging on the beach and exploring the lush jungles. Unfortunately, a sudden monsoon hit the island, turning my dream vacation into a rainy and gloomy affair. Instead of sulking in my hotel room, I decided to embrace the rain and explore the island's hidden gems. I discovered beautiful waterfalls, serene temples, and charming cafes that I wouldn't have found if the weather had been perfect. This experience taught me the importance of being flexible and making the most of a less-than-ideal situation.Another common travel mishap is getting lost in a foreign country. I once found myself wandering the streets of Tokyo, unable to decipher the complicated subway system or ask for directions in Japanese. Panic set in as I realized I had no idea where I was or how to get back to my hotel. However, instead of giving in to fear, I decided to embrace the adventure and explore the city on foot. I stumbled upon quaint neighborhoods, bustling markets, and friendly locals who helped me find my way back. Gettinglost taught me the value of curiosity and spontaneity, and I ended up having a much more authentic and memorable experience than if I had stuck to my original plan.One of the most frustrating travel mishaps is falling victim to tourist traps. I once visited a popular tourist destination in Europe, only to be bombarded with overpriced souvenirs, long lines, and crowded attractions. I felt likeI was just another face in the crowd, ticking off boxes ona must-see list without truly experiencing the culture and beauty of the place. However, I soon realized that the real magic of travel lies in getting off the beaten path andimmersing oneself in the local culture. I ventured into hidden alleyways, sampled street food, and struck up conversations with locals, discovering a side of the destination that most tourists never see. This experience taught me the importance of authenticity and seeking out genuine experiences, even if it means straying from the typical tourist trail.In conclusion, traveling is not always smooth sailing, and we are bound to encounter a few bumps along the way. However, these travel mishaps can be valuable learning experiences that enrich our journeys and make them more memorable. Whether it's dealing with bad weather, getting lost, or falling into tourist traps, embracing the unexpected can lead to unexpected adventures and unforgettable moments. So the next time you find yourself stepping on a landmine during your travels, remember to stay positive, be open to new experiences, and make the most of every situation. Happy travels!。
我最喜欢的动画片丁丁历险记英语作文
我最喜欢的动画片丁丁历险记英语作文My Favorite Animated Show: The Adventures of TintinThere are so many great TV shows and movies out there, but my all-time favorite has to be the animated series The Adventures of Tintin. It's based on the classic Belgian comics by Hergé about a young reporter named Tintin who travels the world and gets caught up in all sorts of thrilling mysteries and daring adventures. The animated version brings the comics to life in the most amazing way!What I love most about The Adventures of Tintin is how exciting and action-packed every episode is. Tintin is always stumbling onto secret plots, hunting for hidden treasures, or trying to catch cunning criminals. There's never a dull moment! He gets mixed up with gangsters, cultists, spies, and even aliens from outer space. Just when you think Tintin has solved one mystery, an even bigger one pops up to keep you on the edge of your seat.I especially love the episodes that take Tintin to exotic locations all around the globe. In one adventure, he's trekking through the sweltering jungles of India on the trail of endangered tigers and a mysterious secret sect. In another, he'sbraving the biting cold of the Arctic while uncovering an unexplored civilization frozen under the ice. With Tintin, you might find yourself in the bustling markets of Morocco one week and the next week you're deep in the Amazon rainforest hunting for an Incan treasure. His adventures span the entire world!No matter where Tintin's travels take him, he always has his loyal dog Snowy by his side. Snowy is like Tintin's hilarious sidekick who is just as brave and tends to help Tintin out of tough jams. I love all the silly antics Snowy gets into, like bugging Captain Haddock or picking fights with other animals. He adds a lot of humor and heart to the series.Speaking of Captain Haddock, he's definitely one of my favorite characters. Haddock is this tough old sea captain who gets roped into tagging along on Tintin's adventures. At first, he's grumpy and doesn't want anything to do with the danger, but he eventually gets caught up in the thrill of the mysteries. Haddock is rough around the edges but has a heart of gold deep down. His salty sailor mouth constantly blurting out nonsense phrases like "Blistering barnacles!" and "Thundering typhoons!" always cracks me up. You can't help but love the cranky old captain!The animation in The Adventures of Tintin is simplymind-blowing. The visuals are incredibly detailed and vibrant, making you feel like you've been transported right into the world of the comics. My favorite animated sequence is the chase scene in the Bagghar episode where Tintin pilots a bright red helicopter in pursuit of some baddies driving wildly across the desert. I was on the edge of my seat the whole time, with my heart pounding in excitement! It looks so real that I almost felt like I was in the helicopter myself!Another thing I love is the rousing musical score that accompanies Tintin on his journeys. The music always gets me psyched for adventure, with lots of triumphant brass andfast-paced rhythms. I'll never forget the soaring melody that plays when Tintin is soaring over exotic vistas in his little red and white plane. It fills me with a sense of wonder and excitement every time!At its core, I think what really makes The Adventures of Tintin so special is the fearlessness and determination of its hero. No matter how impossible the situation seems, Tintin never backs down from a challenge. He's always ready to rush in and do the right thing, even if it means putting himself in harm's way. Time after time, Tintin gets tied up, knocked out, or placed in deadlyperil by the villains, but he never loses hope. He's constantly relying on his quick wits and resourcefulness to escape tight scrapes and turn the tables on the bad guys. Tintin is the kind of hero that inspires you to be brave and never give up.More than anything though, I'm in awe of Tintin's insatiable curiosity about the world around him. He's always eager to learn about new cultures and venture into the unknown, no matter how bizarre or dangerous it may seem. In the Prisoners of the Sun adventure, he could have just walked away when warned about entering the creepy ancient ruins filled with traps and hazards. But no, Tintin had to uncover the secrets inside, even if it meant risking life and limb. I admire his thirst for knowledge and truth. Watching Tintin has filled me with a desire to travel and explore as much of this amazing world as I can.I really can't say enough good things about The Adventures of Tintin. Every episode is overflowing with suspense, action, exotic adventure, silly humor, and valuable lessons about friendship and perseverance. The mind-blowing animation and music transport you to realms of pure excitement and wonder. You can't help but be in awe of Tintin's bravery, cleverness, and insatiable spirit of discovery. This animated series has definitely kindled my own youthful sense of adventure. While I impatientlyawait any news of future Tintin adventures, I'll just have to keep re-watching my favorite episodes over and over again. It never gets old!。
超前消费的危害英语作文
超前消费的危害英语作文The Hazards of Over-Consumption.In today's fast-paced and materialistic society, the concept of over-consumption, or超前消费, has become increasingly prevalent. Driven by the allure of instant gratification and social media's portrayal of a perfect life, individuals are often tempted to spend beyond their means, accumulating debts and stress in the process. The hazards of over-consumption are numerous and far-reaching, affecting both individuals and society at large.Firstly, over-consumption can lead to financial instability and debt traps. When individuals borrow money to finance their purchases, they often find themselves trapped in a vicious cycle of debt. The interest payments alone can be a significant burden, and the constant stress of debt can lead to poor mental health and even bankruptcy. This financial instability can further impact one's ability to save for the future, invest in oneself, or plan foremergencies.Secondly, over-consumption contributes to environmental degradation. The relentless pursuit of more goods and services often comes at a cost to the environment. The overexploitation of resources, increased waste production, and carbon emissions from transportation all contribute to climate change and environmental degradation. This, in turn, has negative impacts on human health, biodiversity, and the overall sustainability of our planet.Thirdly, over-consumption can foster a culture of materialism and instant gratification. This culture often leads to a lack of appreciation for what one already hasand a constant quest for more. It can erode the sense of community and connectedness, as individuals become more focused on acquiring material possessions rather than building meaningful relationships or contributing to society.Moreover, over-consumption can have negative effects on one's mental health and well-being. The constant pursuit ofmore can lead to feelings of inadequacy, anxiety, and dissatisfaction. The constant comparison with others on social media can foster feelings of inferiority and loneliness. This constant state of dissatisfaction can lead to a decrease in one's quality of life and a lack of fulfillment.Additionally, over-consumption can have economic consequences for society at large. It can lead to inflationary pressures, as demand for goods and services outpaces supply. This, in turn, can lead to price increases and a decrease in purchasing power. It can also lead to economic instability and bubbles, as markets become overheated and then crash, causing significant financial losses.To mitigate the hazards of over-consumption,individuals and society need to adopt a more sustainable and responsible approach to consumption. This includes developing a budget and saving habits, practicing mindfulness and gratitude, and seeking alternatives to material possessions such as experiences or time spent withloved ones. At the societal level, policies and regulations need to be implemented to encourage sustainable production and consumption practices, such as tax incentives for green products and tighter regulations on waste management and pollution.In conclusion, the hazards of over-consumption are numerous and far-reaching. It erodes financial stability, degrades the environment, fosters a culture of materialism, and has negative effects on mental health and well-being. To address these issues, individuals and society need to adopt a more responsible and sustainable approach to consumption. By doing so, we can ensure a more sustainable and fulfilling future for ourselves and our planet.。
企业规避陷阱的例子英语作文
企业规避陷阱的例子英语作文Examples of Corporate Pitfall AvoidanceIn the corporate world, avoiding pitfalls is crucial for the sustainable growth and success of a business. Companies that proactively identify potential traps and take necessary precautions are more likely to thrive in the long run. Here are some examples of how enterprises can avoid common pitfalls:1. Market Research and AnalysisBefore launching a new product or entering a new market, it is essential to conduct thorough market research and analysis. Company X realized the importance of understanding customer needs and preferences, and thus invested heavily in market research. By doing so, they were able to identify potential challenges and adapt their product accordingly, avoiding the trap of launching an unsuccessful product.2. Diversification of Revenue StreamsRelying heavily on a single revenue stream can be risky for a company. To avoid this pitfall, Company Y diversified its income sources by expanding into related industries and exploring new markets. This strategy helped them maintain stability and profitability, even when faced with economic downturns or industry-specific challenges.3. Effective Risk ManagementIdentifying and managing risks is crucial for any business. CompanyZ implemented a robust risk management framework, which allowed them to identify potential threats and devise strategies to mitigate them. By being proactive in risk management, they avoided financial losses and reputational damage that could have resulted from unforeseen events.4. Employee Training and DevelopmentA skilled and motivated workforce is essential for a company's success. Company A recognized this and invested in regular employee training and development programs. By equipping their staff with the necessary skills and knowledge, they avoided the pitfall of low productivity and high employee turnover.5. Customer Relationship ManagementMaintaining strong relationships with customers is vital for business growth. Company B implemented an effective customer relationship management (CRM) system to track customer interactions and feedback. This helped them identify potential issues early on and address them promptly, avoiding the loss of valuable customers.6. Adaptability and InnovationThe corporate landscape is constantly evolving, and companies that fail to adapt may face extinction. Company C embraced innovation and remained adaptable to changing market trends and technologies. By continuously improving their products and services, they avoided the trap of becoming obsolete and maintained their competitive edge.7. Financial PrudencePoor financial management can lead to severe consequences for a company. Company D practiced financial prudence by maintaining a healthy cash flow, managing debt wisely, and budgeting effectively. This approach helped them avoid the pitfalls of bankruptcy and financial instability.In conclusion, these examples demonstrate various strategies that companies can employ to avoid common pitfalls. By focusing on market research, diversification, risk management, employee development, customer relationships, adaptability, and financial prudence, businesses can enhance their chances of long-term success.。
怎么避开外汇陷阱英语作文
怎么避开外汇陷阱英语作文How to Avoid Forex Traps。
Forex trading is an exciting and potentially lucrative activity, but it can also be fraught with traps that can lead to significant losses. In this article, we will explore some of the most common forex traps and providetips on how to avoid them.Trap #1: Overtrading。
One of the most common forex traps is overtrading. This is when traders make too many trades, often in quick succession, without taking the time to properly analyze the market. Overtrading can lead to emotional trading, which can cause traders to make irrational decisions based on fear or greed.To avoid overtrading, it is important to have a trading plan in place. This plan should include entry and exitpoints, as well as stop-loss and take-profit levels. Traders should also set limits on the number of trades they make each day or week, and stick to those limits.Trap #2: Lack of Discipline。
保险经济学术语英文
保险经济学术语英文Insurance Economics TerminologyActuarial Science: The study of the mathematical and statistical analysis of risk, particularly in the insurance and finance industries.Adverse Selection: The tendency of individuals with a higher risk profile to be more likely to purchase insurance, leading to an imbalance in the insurance pool.Annuity: A series of periodic payments made to an individual for a fixed period or for life, often used as a retirement income product.Arbitrage: The practice of taking advantage of a price difference between two or more markets, with the goal of making a profit.Asset-Liability Management (ALM): The process of managing the balance between an organization's assets and liabilities to ensure that it can meet its financial obligations.Basis Risk: The risk that the value of a hedging instrument does not perfectly offset the value of the underlying exposure, leading to potential losses.Behavioral Economics: The study of how psychological, cognitive, and emotional factors influence economic decision-making.Catastrophe Bond (Cat Bond): A type of insurance-linked security that transfers the risk of catastrophic events, such as natural disasters, to the capital markets.Coinsurance: A cost-sharing arrangement in insurance where the policyholder and the insurer both pay a portion of the covered expenses.Deductible: The amount that the policyholder must pay out-of-pocket before the insurance company begins to cover the remaining costs.Diversification: The practice of investing in a variety of assets to reduce the overall risk of a portfolio.Endowment: A sum of money or other financial assets that are donated to an institution, such as a university or charity, to provide a permanent source of income.Equity-Linked Insurance: A type of life insurance product that combines traditional life insurance with investment in equity markets.Hedging: The practice of taking an offsetting positionin a related asset to mitigate the risk of adverse price movements.Indemnity: The compensation paid by an insurance company to a policyholder for a covered loss or damage.Insurable Interest: The requirement that an individual or entity must have a legitimate financial interest in the subject of an insurance policy in order to purchase it.Moral Hazard: The tendency of individuals to engage in riskier behavior when they are protected from the consequences of their actions, such as through insurance coverage.Pension: A regular payment made to a person, typically by an employer or the government, upon retirement or after a period of service.Reinsurance: The practice of insurers transferring portions of their risk portfolios to other insurancecompanies to reduce the likelihood of having to pay a large claim.Risk Aversion: The tendency of individuals to prefer a guaranteed, lower-return option over a higher-risk, higher-return option.Securitization: The process of converting illiquid assets, such as loans or mortgages, into tradablesecurities that can be sold to investors.保险经济学术语精算学: 研究风险的数学和统计分析,尤其是在保险和金融行业。
外国人来中国旅游的建议句子英语作文高一
外国人来中国旅游的建议句子英语作文高一Visiting China? Awesome! You're in for an amazing adventure. China is a fascinating country with a rich history, delicious food, and so many cool things to see and do. But it can also be a bit overwhelming, especially if you've never been before. Don't worry though, I've got your back with some handy tips!First up, get ready for a serious culture shock! China is super different from Western countries in many ways. The language, customs, food, everything! It can feel like you've landed on another planet at first. But that's what makes it so exciting to explore. Just go with an open mind and a willingness to try new things.Now, let's talk about getting around. Public transportation in China is awesome and cheap. Buses, subways, trains, you name it. Just get ready to practice your people shoving skills because it can get crazy crowded, especially during rush hour! If you're traveling between cities, I'd recommend taking a high-speed train. They're comfortable, affordable, and can get you across the country at super speeds.One of the biggest challenges will probably be the language barrier. Unless you're already a Chinese language pro, be prepared for some serious mime games and creative body language. Download a translation app on your phone - it'll be your new best friend. And learn a few key Mandarin phrases like "Hello," "Thank you," and "Where is the bathroom?" The locals really appreciate when foreigners make an effort.Speaking of locals, be ready to attract a lot of curious stares and attention, especially if you're in a smaller city or rural area where foreigners are still a novelty. Some people might even ask to take photos with you! It's harmless and they're just excited to see someone from another culture. Just smile, nod, and work those modeling poses.Now let's get to the fun stuff - the sights! You've got to check out iconic landmarks like the Great Wall, Forbidden City, and Terracotta Warriors. They're massive, ancient, and downright mind-blowing. But China has so much more to offer beyond the typical tourist traps. Explore ancient water towns, hike through stunning national parks, or wander the streets of an old hutong neighborhood for a glimpse of traditional life. Ask a local for recommendations on cool off-the-beaten-path gems.Prepare your taste buds because Chinese cuisine is out of this world delicious. From mouth-numbing Sichuan dishes to thick fresh noodles to the most amazing dumplings you've ever tasted, you're in for a serious food coma. Don't be afraid to dive into the world of street food either - skewered scorpions, anyone? If you're feeling brave, give it a try (just don't think about what you're eating!). Otherwise, stick to classics like jianbing, tanghulu, and jiaozi.While we're on the topic of food, you should know that dining etiquette in China is a bit different than in the West. Slurping your noodles? Perfectly acceptable. Using your chopsticks to shovel food from shared dishes straight into your mouth? Go for it. Just don't stick your chopsticks straight up in your rice - that's considered bad luck.China is a shopper's paradise too. You've got massive malls, kitschy souvenir stands, underground markets...basically anything and everything you can imagine. Browse the fake markets for cheeky knock-off goods if you dare (just don't try to take them across any borders). Or lose yourself in the organized chaos of places like Beijing's Panjiayuan Antique Market or Shanghai's fabric markets. Haggling is a way of life, so get those bargaining skills ready!No visit to China would be complete without experiencing some of the country's unique traditions and cultural gems. Catch an acrobat show featuring mind-bending contortionists. Sip fragrant tea in an age-old teahouse. Study the ancient practice of calligraphy or tai chi with a master. Trust me, you'll leave with a deep appreciation for the richness of Chinese culture.Of course, you can't forget about exploring China's diverse and stunning natural scenery either. Hike along the iconic Yellow Mountain trails. Take a cruise through the otherworldly landscapes of Zhangjiajie's pillar-like peaks. Relax in the serene gardens of Suzhou. Wherever you go, you'll be blown away by the beauty.Now, I can't wrap this up without mentioning a few practical tips and words of wisdom. First, get ready to negotiate everything from cab fares to souvenirs. It's just part of the culture. Pack your bargaining skills and be firm but not rude. Next, try to learn a bit about local customs and etiquette to avoid embarrassing faux pas. For example, don't give someone a clock as a gift - it's considered unlucky. And be prepared for attention from begging children or residents with disabilities asking for money - whether to give or not is a personal choice.Lastly, and most importantly, keep an open, respectful, and adventurous mindset at all times. China is a rapidly modernizing country constantly evolving, so go with the flow. You'll likely encounter some frustrating cultural differences, but they're all part of the experience. At the end of the day, the Middle Kingdom has a way of getting under your skin and into your heart if you let it.So there you have it - your starter guide to exploring the mysteries and wonders of China! It's an exhilarating, mesmerizing, and yes, sometimes maddening place. But I guarantee you'll make memories that'll last a lifetime. Prepare to fall in love with the sights, smells, and organized chaos of this magnificent country. Your adventure awaits!。
海鲜是汕头的特色英语作文
海鲜是汕头的特色英语作文Seafood is a specialty of Shantou, a coastal city in Guangdong Province, China. As a major port city, Shantou has a long history of seafood trade and consumption. The local cuisine is famous for its fresh and delicious seafood dishes, which attract many tourists and food lovers fromall over the world.Shantou is blessed with abundant marine resources, including various types of fish, shrimp, crab, squid, and shellfish. The local fishermen use traditional methods such as fishing nets, traps, and hooks to catch the seafood, which ensures the quality and freshness of the products. The seafood is then sold at the local markets or restaurants, where it is cooked into various dishes that reflect the unique flavor and style of Shantou cuisine.One of the most popular seafood dishes in Shantou is steamed fish. The fish is usually a type of white-fleshed fish such as pomfret or grouper, which is steamed withginger, scallion, soy sauce, and other seasonings. The steaming method preserves the natural flavor and texture of the fish, and the seasoning enhances its taste and aroma. Another famous dish is stir-fried shrimp with garlic and chili. The shrimp is stir-fried in a wok with garlic, chili, and soy sauce, which gives it a spicy and savory flavor.The dish is usually served with rice or noodles, and it isa favorite among locals and visitors alike.Apart from these classic dishes, Shantou also offers a wide range of seafood delicacies that are unique and creative. For example, there is a dish called "seafood hotpot", which is a combination of various seafood such as fish, shrimp, crab, and shellfish, cooked in a hotpot with vegetables and spices. Another interesting dish is "seafood congee", which is a rice porridge cooked with seafood and broth, and seasoned with soy sauce, sesame oil, and scallion. These dishes not only showcase the diversity and richness of Shantou seafood cuisine, but also reflect the creativity and innovation of the local chefs.In conclusion, seafood is a vital part of Shantouculture and cuisine. Its abundance and freshness, combined with the unique cooking techniques and seasonings, make it a must-try for anyone who visits this coastal city. Shantou seafood is not only a feast for the taste buds, but also a window into the local history, tradition, and lifestyle.。
海外购保险的弊端英语作文
海外购保险的弊端英语作文Title: Drawbacks of Overseas Purchase Insurance。
In recent years, the trend of purchasing insurance from overseas providers has gained popularity among consumers seeking alternative coverage options. This phenomenon, however, is not without its drawbacks. Let us delve into the intricacies of this issue and explore the challenges associated with overseas purchase insurance.Firstly, one of the primary concerns with overseas purchase insurance lies in the complexities ofinternational regulations and legal frameworks. Insurance policies vary significantly across countries, and navigating these differences can be a daunting task for policyholders. Understanding the terms and conditions, as well as the jurisdictional implications of an overseas policy, often requires expert knowledge and legal counsel. This complexity can lead to misunderstandings or disputes when claims arise.Secondly, language barriers present a significant obstacle in the context of overseas purchase insurance. Many policies are issued in languages other than the policyholder's native tongue, making it challenging to comprehend the intricacies of the coverage. Misinterpretation of policy terms due to language differences can result in inadequate coverage or unexpected exclusions when a claim is made. Effective communication between the insurer and the policyholder becomes essential but is often hindered by linguistic disparities.Another critical drawback of overseas purchase insurance relates to the differences in healthcare systems and medical practices across countries. Health insurance policies, for instance, may not seamlessly integrate with local healthcare providers or may have limited coverage for certain medical treatments. This can lead to complications when seeking medical services abroad, as policyholders may face unexpected out-of-pocket expenses or difficulties in accessing appropriate care.Furthermore, the administrative challenges associated with overseas purchase insurance cannot be overlooked. Dealing with paperwork, submitting claims, and communicating with foreign insurers often requires additional time and effort. Delays in claims processing or lack of responsiveness from overseas insurers can exacerbate these administrative burdens, leaving policyholders frustrated and dissatisfied with their insurance experience.In addition to practical challenges, there are also financial implications to consider. Overseas purchase insurance may sometimes come with higher premiums compared to domestic policies, particularly if they offer specialized coverage or cater to specific needs. Furthermore, currency fluctuations and exchange rate risks can affect the cost-effectiveness of maintaining an overseas insurance policy over the long term.Lastly, cultural differences and varying consumer protection standards can influence the overall experience of overseas purchase insurance. Consumers may findthemselves unfamiliar with the practices and norms of foreign insurers, which can impact trust and confidence in the coverage provided. Differences in dispute resolution mechanisms and consumer rights protection may also leave policyholders feeling vulnerable or disadvantaged in case of disagreements.In conclusion, while overseas purchase insurance offers an alternative avenue for obtaining coverage, it is not without its share of challenges and drawbacks. From legal complexities and language barriers to practical and financial considerations, navigating the landscape of overseas insurance can be a demanding task for policyholders. It is essential for consumers to weigh these factors carefully and seek professional advice before opting for insurance from foreign providers. Ultimately, a well-informed decision is key to ensuring adequate protection and peace of mind in an increasingly globalized insurance market.。
晚间有导游吗英语作文
晚间有导游吗英语作文英文:In the evening, do we have a tour guide? This is a common question that many travelers ask when they are on a trip. Having a tour guide in the evening can be very helpful, especially when exploring a new city or experiencing a different culture. 。
Having a tour guide in the evening can provide a different perspective on the city or the attractions that you are visiting. They can offer insights and stories that you might not get during the day. For example, when I wasin Paris, my tour guide took us on a night tour of the city and shared fascinating stories about the history of the famous landmarks. It was a completely different experience compared to the daytime tours.Another benefit of having a tour guide in the eveningis the convenience and safety they provide. Navigatingthrough unfamiliar streets and neighborhoods can be daunting, but with a knowledgeable guide, you can feel more at ease. They can also help you avoid tourist traps and ensure that you have a memorable and enjoyable experience.In addition, some attractions or events are only available in the evening, such as night markets, light shows, or cultural performances. A tour guide can help you make the most of these unique opportunities and ensure that you don't miss out on anything special.Overall, having a tour guide in the evening can enhance your travel experience and provide valuable insights and convenience. It's definitely worth considering when planning your itinerary.中文:晚上是否有导游呢?这是许多旅行者在旅途中经常问的问题。
Businesses 大型企业有大量的营销所以人们倾向于购买他们的产品这会造成什么问题 英语作文
Large businesses have big budgets for marketing and promotion and, as a result, people gravitate towards buying their products.What problems does this cause? What could be done to encourage people to buy local products?Give reasons for your answer and include any relevant examples from your own knowledge or experience.You should write at least 250 words.Sample Answer:Big corporations and international brands spend a large sum of money on marketing andadvertising. Consequently, people tend to buy their products while small local businesses fail to reach potential customers. This can lead to some serious problems; such as the closure of local businesses, unemployment and the monopoly in the market. There are a few steps that can be adopted to address this issue and motivate people to buy local products.Naturally, consumers prefer to buy products that were consciously and unconsciously promulgated to their minds by large brands. Due to this, many local businesses, even with their quality products, cannot attract customers. Thedominance of international brands thus ruins local business entities. As a consequence, many small local companies run out of business, and it can make thousands of people unemployed.Moreover, creative and deceptive advertisements and marketing policies of big players create a monopoly in the market which traps many consumers in believing that bigger brands mean prestige and quality. For instance, the dominance of international clothing and fashion brands had swept away many local businesses in many Asian countries, including mine, and money spent on advertisement playeda big role here. To encourage people to purchase local products, some measures should be taken into account. The government should strictly monitor and ban any deceptive and illusory advertisements from the mass media.Besides, people should compare product quality before purchasing from shops, and the shop owners should be encouraged to shelf local products along with the branded products.Furthermore, authorities should rate and review any product and disclose it to the public. Finally, local product manufacturers should be financially supported by the banks and thegovernment as they are helpful for the economic progress of a country.To conclude, the absolute dominance of large businesses can have many negative effects that can damage the market and economy of a country. A solution to this problem is systematising local markets and creating a closely integrated system that can have an effective outcome.。
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Nondiversification Traps in Catastrophe Insurance MarketsRustam IbragimovHarvard UniversityDwight JaffeeUniversity of California at BerkeleyJohan WaldenUniversity of California at BerkeleyWe develop a model for markets for catastrophic risk.The model explains why insuranceproviders may choose not to offer insurance for catastrophic risks and not to participatein reinsurance markets,even though there is a large enough market capacity to reach fullrisk sharing through diversification in a reinsurance market.This is a“nondiversificationtrap.”We show that nondiversification traps may arise when risk distributions have heavyleft tails and insurance providers have limited liability.When they are present,there maybe a coordination role for a centralized agency to ensure that risk sharing takes place.1.IntroductionCatastrophe insurance provides compensation for losses created by such natu-ral risks as earthquakes,floods,and wind damage,as well as man-created risks including terrorism.Over the pastfifteen years,most private-market property and casualty(P&C)insurancefirms stopped offering coverage against catas-trophe risks,usually in the wake of a major event.Key private market failures include Florida hurricane insurance after Hurricane Andrew in1992,California earthquake insurance after the Northridge quake of1994,and,most recently, US terrorism insurance after the9/11attack.Catastrophe insurance markets have also failed worldwide in most developed countries.In response,state and federal governments have been forced to try to replace or to revive the pri-vate markets,the most recent example being the US Terrorism Risk Insurance We thank Greg Duffee,William Ellsworth,Christine Parlour,Jacob Sagi,Eric Talley,Gordon Woo,and partic-ipants at the NBER Insurance Project workshop for valuable comments.We also thank Steve Evans for help with one of the proofs.Finally,we thank the editor,Matthew Spiegel,and the referee,for valuable suggestions.Send correspondence to Rustam Ibragimov,Department of Economics,Harvard University,1875Cambridge St., Cambridge,MA02138,telephone:617-496-4795,fax:617-495-7730.E-mail:ribragim@.C The Author2008.Published by Oxford University Press on behalf of The Society for Financial Studies.All rights reserved.For Permissions,please e-mail:journals.permissions@.doi:10.1093/rfs/hhn021Advance Access publication March29,2008The Review of Financial Studies/v22n32009Act of2002(TRIA)and its2005extension.Unfortunately,the government interventions are generally considered to be quite inefficient.1Understanding the source of the private market failures is essential if more effective remedies are to be found.A fundamental question is why catas-trophe risks are“uninsurable”for the private insurancefirms.Asymmetric information—adverse selection and/or moral hazard—is the common textbook explanation for insurance market failures,but there seems to be little role for asymmetric information with respect to natural disasters or terrorism attacks.2 Imprecision in estimating the underlying stochastic process is also sometimes suggested as a basis for“uninsurability,”but even if parameter imprecision raises the cost of insurance,perhaps due to ambiguity aversion,it is unclear why it would cause the market to fail;see Froot(2001).A third basis for“uninsurability”is that the possible losses may exceed the capital resources of the P&C insurance industry;see Cummins,Doherty,and Lo(2002).For example,the losses created by war or by terrorist use of weapons of mass destruction(WMD)could readily exceed the capital resources of all P&Cfirms.The deadweight costs of bankruptcy,including a loss in the value of the managers’human capital,could then motivate the unwillingness offirms to participate in the catastrophe insurance markets.War and WMD risks,however, have long been excluded from most insurance contracts,without jeopardizing the availability of coverage for standard risks.War and WMD risks aside,size alone does not appear to explain the recent failure of so many different catastrophe insurance markets.Table1shows the 10most costly insurance losses since1970as compiled by SwissRe(2006). The losses created by the Katrina hurricane of2005were USD45billion, followed by the Florida Hurricane Andrew of1992(USD22billion),and the 9/11terrorist attack(USD21billion).In comparison,the capital resources of the P&C insurance industry at year-end2005totaled approximately USD446 billion,and in each year since2001,the P&C industry has increased its capital resources(net of losses)by at least USD29billion.3Although P&C industry resources can cover most catastrophic risks,cover-age is provided at the level of individualfirms,not the industry.Furthermore, insurers tend to specialize in geographic regions and particular lines of cover-age,putting individualfirms at potentially high risk to a specific catastrophic event.Regulation is a major cause of the geographic and insurance line spe-cialization,since US insurancefirms must be chartered separately in each state 1See Cummins(2006);Jaffee(2006);and Jaffee and Russell(2006)for recent discussions and references to the literature.OECD(2005,August)and OECD(2005,July)discuss government interventions around the world to reactivate terrorism insurance.Kunreuther and Michel-Kerjan(2006)discuss the specific issue of terrorism insurance in the United States.2There is generally open access to scientific forecasts of natural disasters,much of it provided by governments. Terrorists may be more strategic in their choice of targets,but this does not create a moral hazard on the part of those purchasing terrorism insurance(unless the terrorists particularly target insured properties).3These data are from the Insurance Information Institute;see /media/industry/.960Nondiversification Traps in Catastrophe Insurance MarketsTable1The world’s10costliest insurance eventsDate Event Insured losses1(USD Billion)August24,2005Hurricane Katrina45September23,1992Hurricane Andrew22September11,2001World Trade Center21January17,2004Northridge Earthquake18September2,2004Hurricane Ivan12September20,2005Hurricane Rita10October16,2005Hurricane Wilma10August11,2004Hurricane Charley8September27,1991Typhoon Mireille(Japan)8January25,1990Storm Daria(Europe)7Source:SwissRe(2006).1Property and Business interruption;excludes liability and life insurance.in which they operate and they face substantialfixed costs for marketing and for developing actuarial expertise for each line and for each state.4The result is that relatively few catastrophe insurancefirms operate in each state and for each catastrophe line.Risk-averse executives with ties to their ownfirm may wish to avoid such an undiversified position.Reinsurancefirms exist,of course,precisely to redistribute risks,allowing individual insurers to match their retained risks with their capital resources. Thus,if reinsurance markets function efficiently,then capital adequacy at the industry level is in fact the relevant measure.Unfortunately,the proximate cause of the observed failures of the primary catastrophe insurance markets has been precisely the failure of the associated reinsurance markets.For this reason, the fundamental question is why the reinsurance markets for catastrophe risks have largely failed.In this paper,we argue that the observed dynamic pattern of widely vary-ing supply conditions for catastrophe insurance and reinsurance could reflect a multiple equilibrium system,with the market sometimes reaching a coor-dinated reinsurance/diversification equilibrium,but at other times falling into what we call a nondiversification trap.The term is related to poverty traps and development traps in economic growth theory(Barro and Sala-i-Martin,2004; Azariadis and Stachurski,2006).It denotes a situation where there are two possible equilibria:a diversification equilibrium in which insurance is offered and there is full risk sharing through the reinsurance market,and a nondiver-sification equilibrium,in which the reinsurance market is not used,and no insurance is offered at all.A move from the nondiversification equilibrium to the diversification equilibrium has to be coordinated by a large number of 4Insurance is unique among USfinancial services in that it is regulated in the United States only at the state level. The structure of a catastrophe insurance market is well illustrated by California’s earthquake risk market.As of 2005,70%of the coverage was provided by the California Earthquake Authority,an entity created by the State of California following the1994Northridge quake.With no major quakes since then,private insurers have slowly reentered the market,now representing about30%of the market.However,still only35private insurance groups are offering California earthquake coverage(based on annual written premiums of USD1million or more). Furthermore,the top5,10,and20firms represent46%,66%,and89%of the total private market,respectively.961The Review of Financial Studies/v22n32009insurers and reinsurers,which may be difficult to achieve through a market mechanism.Therefore,there may be a role for a centralized agency to ensure that the diversification equilibrium is reached,for example,by mandating that insurance must be offered(as in the case of the US Terrorist Risk Insurance Act of2002and in the corresponding government plans in most European countries).Consequently,our discussion and model focus on reinsurance as the mech-anism that could be used to coordinate the diversification equilibrium.A func-tioning reinsurance industry,however,requires that the primary insurers be willing to write policies in anticipation that other insurers will do the same and that the reinsurers will pool all the risks,to reach the global diversifica-tion outcome.Our model will determine the conditions under which such an equilibrium can and cannot occur.The existence of nondiversification traps depends crucially on there being conditions under which diversification becomes suboptimal for the individual insurers.This is contrary to the traditional framework in which diversification is always preferred(see,e.g.,Samuelson1967,for equity investments and Froot and Posner,2002,for insurance).The traditional framework uses concave optimization(e.g.,via expected utility),with thin-tailed risks(e.g.normal distributions),and without distortions(unlimited liability,no frictions and no fixed costs).If any of these assumptions fails,diversification may not always be preferred.5Our discussion focuses,in particular,on the impact of heavy left-tailed distributions(implying a non-negligible probability for large negative outcomes)as the defining property of catastrophic risks.Figure1,from Ibragimov and Walden(2007),provides an intuition for how nondiversification traps can arise for insurance.Consider a situation in which there is a maximum number of distinct risks that an individual insurance provider can take on,e.g.,N=10.The constraint of the maximum num-ber of risks that an individualfirm can accept is in line with our regulatory discussion earlier and can also be motivated by capacity constraints,capital requirements,and segmented markets.The three lines A,B,and C in thefig-ure describe the value(e.g.,measured as a certainty equivalent)of holding a diversified portfolio of n risks as a function of n.In this paper,we study a model in which the value is a U-shaped function of the number of risks, corresponding to line B(also studied in a different context in Ibragimov and 5Beginning with Mandelbrot(1963)and Fama(1965),numerous papers have studied the presence of heavy-tailedness in economics,finance,and insurance.We mention a sample:heavy-tailedness of return distributions in stock markets has been documented by Jansen and de Vries(1991);Loretan and Phillips(1994);McCulloch (1996,1997);Rachev and Mittnik(2000);and Gabaix,Gopikrishnan,Plerou,and Stanley(2003).Moreover, Scherer,Harhoff,and Kukies(2000)and Silverberg and Verspagen(2004)report that distributions offinancial returns from technological innovations are extremely heavy-tailed and do not havefinite means.Neˇs lehova, Embrechts,and Chavez-Demoulin(2006)discuss empirical results that indicate similar extreme thick-tailedness with infinitefirst moments for the loss distributions of a number of operational risks.Finally,as was shown in Ibragimov(2004,2005)in a general context,with heavy-tailed risks diversification may be inferior,regardless of the number of risks available.In Ibragimov and Walden(2007)it was further demonstrated that with heavy tails and limited liability,diversification may be suboptimal up to a certain number of risks,and then become optimal.962Nondiversification Traps in Catastrophe Insurance MarketsFigure1Value of diversificationA:Traditional situation.The value increases monotonically and it is always preferable to add another risk to the portfolio.B:Situation in Ibragimov and Walden(2007).Up to a certain number of assets,value decreases with diversification.C:Situation in Ibragimov(2004,2005).Value always decreases with diversification. Walden,2007).In this case,for any individual insurance provider,diversifica-tion will clearly be suboptimal as the value decreases in n for n≤N=10. However,if there are M insurance providers in the market,they could poten-tially meet in a reinsurance market,pool the risks,and reach full diversifi-cation with N M risks.For this to be preferred to nondiversification,at least M=7insurance providers must pool the risks.This is a very different situa-tion compared to the traditional situation in line A,in which each individual insurance provider will choose maximal diversification into N risks,and in which two insurance providers can always improve their situation by pooling their risks in a reinsurance market.For line B,there may be a coordination problem.The objective of this paper is to show how heavy-tailed distributions can lead to nondiversification traps,to provide an understanding of the results and,finally,to interpret markets for catastrophe insurance in light of the results. The paper is organized as follows.In Section2,we show how traps can arise. Sections2.1and2.2provide intuition for the results.Sections2.3and2.4 provide a formal game-theoretic setup for a simple reinsurance market,in which nondiversification traps can be analyzed.Moreover,the concept of genuine nondiversification traps is introduced.These traps are severe in that they will not disappear,regardless of the capacity of the insurance market.They may, therefore,explain the nonexistence of insurance in markets in which there is a large capacity for risk sharing,but no insurance is offered.In Section3,we show the existence of nondiversification traps and characterize the conditions under which they can arise.In Section4,we discuss the implications of our theory for real markets for catastrophe insurance.Finally,we make some concluding remarks in Section5.All technical details are presented in the Appendix.963The Review of Financial Studies/v22n320092.Nondiversification Traps2.1Diversification of heavy-tailed risksWhen distributions have heavy tails,diversification may increase risk.This is of course contrary to the traditional case;for example,represented by normal distributions X∼Normal(μ,σ2).6We show how,using the L´e vy distribution concentrated on the left semi-axis.This is mainly for simplicity:the L´e vy distri-bution is one of the few stable distributions for which closed-form expressions exist.7The class of stable distributions is a subclass of the class of distributions whose left tails satisfy a Pareto law,i.e.,exhibit power-law decay:F(−x)∼x−α,x>0,α>0,where F is a cumulative distribution function(c.d.f.).8The p.d.f.of the L´e vy distribution with location parameterμand spread parameterσisφ(x)=⎧⎨⎩σ2πe−σ/2(μ−x)(μ−x)−3/2,x<μ, 0,x≥μ,and the c.d.f.isF(x)=⎧⎨⎩Erfσ√2(μ−x),x<μ1,x≥μ.(1)Here,Erf(y)=2√π ye−t2dt is the error function;see Abramowitz and Stegun(1970).We denote by Lμ,σthe class of random variables(r.v.’s)with the aboveL´e vy distributions.Similar to normal distributions,a higher value of the spread parameterσfora L´e vy distribution implies higher riskiness(for afixedμ).In fact,increasing σfor L´e vy risks leads tofirst-order stochastically dominated risk,as seen from Equation(1).Contrary to normal distributions,diversification of L´e vy risks increasesσ.For example,if X1and X2are i.i.d.,L´e vy risks,both with spread parameters σ,then a portfolio of half of each risk,(X1+X2)/2,has a spread parameter of 2σ.This follows from the following general diversification rule for portfolios6It is also true for general distributions withfinite second moments,E(X2)<∞.This condition is assumed in Samuelson(1967).7Stable distributions are those closed under portfolio formation;see,e.g.,the reviews in Ibragimov(2004,2005). Besides L´e vy distributions,closed-form expressions for stable densities are available only in the case of normal and Cauchy distributions.8Here and throughout the paper,F(x)∼G(x)denotes that there are constants,c and C,such that0<c≤F(x)/G(x)≤C<∞for large x>0.964Nondiversification Traps in Catastrophe Insurance Marketsof K independent L´e vy distributed risks,with nonnegative portfolio weights, c i∈R+:X i∈Lμi,σi,i=1,...,K=⇒Ki=1c i X i∈Lμ,σ,μ=Ki=1c iμi,σ=Ki=1(c iσi)1/22.A special case is uniform diversification,X i∈Lμ,σ,i=1,...,K=⇒ Ki=1X iK∈Lμ,Kσ,so uniform diversification of K i.i.d.risks increases the spread parameter from σto Kσin line with the example above.Another case is the Cauchy distribution with location parameterμand scale parameterσ,X∈Sμ,σ,whose p.d.f.is given byφ(x)=1πσ11+x−μσ2,and whose c.d.f.has the formF(x)=12+1πarctanx−μσ.For independent Cauchy distributions,the portfolio diversification rule isX i∈Sμi,σi,i=1,...,K=⇒Ki=1c i X i∈Sμ,σ,whereμ=Ki=1c iμi,σ=Ki=1c iσi.Uniform diversification of Cauchy distributed risks therefore has no effect on total risk,i.e.,X i∈Sμ,σ,i=1,...,K=⇒ Ki=1X iK∈Sμ,σ.The Cauchy case is thus intermediate between the L´e vy case and the case with normal distributions.2.2Risk poolingWe begin by studying the potential value of risk sharing among multiple risk-takers.Wefirst develop the intuition and then,in the following sections,prove the results rigorously for a model of a reinsurance market.965The Review of Financial Studies /v 22n 32009We study the behavior of risk-takers.Because we focus on the context of risk-taking insurance companies,we will refer to these risk-takers as insurers.We assume that the number of insurers is bounded by M and that all insurers are expected utility optimizers with identical strictly concave utility functions u .We assume that there is limited liability.Clearly,real-world insurance firms have limited liability and may default in some states of the world.This case is increasingly studied in the insurance literature;see Cummins,Doherty,and Lo (2002);Cummins and Mahul (2003);and Mahul and Wright (2004).For catastrophe insurance,with heavy-tailed distributions,there is an effectively nonzero (although small)probability that such a catastrophic event will create default.Technically,limited liability is needed in the model,because with heavy-tailed distributions,the expected payoffs and values are not otherwise defined.We shall,however,see that the probability for default is small in equilibrium.Moreover,we will show that our results are not driven by the convexity of payoffs introduced by limited liability:For markets with large aggregate risk-bearing capacity,our results will apply only if distributions are heavy-tailed.The assumption of limited liability is modeled by insurers being liable to cover losses only up to a certain amount k .If losses exceed k ,an insurer pays k ,but defaults on any additional loss.9Thus,if an insurer takes on a random risk of X ,the effective outcome for the insurer once X is realized is V (X )= X ,if X ≥−k −k ,if X <−k.(2)In the special case when there is no limited liability,i.e.,when k =∞,we have V (X )=X for all X .If k <∞,u needs only to be defined on [−k ,∞)and we can,without loss of generality,assume that u (−k )=0.Assuming i.i.d.risks X 1,X 2,...,we wish to study the expected utility of s agents,who share j risks equally.We therefore define the random variable z j ,s =( j i =1X i )/s ,with c.d.f.F j ,s .The expected utility of such risk sharing is U j ,s def =Eu (V (z j ,s ))=∞−ku (x )d F j ,s (x ).(3)Firms are usually considered to be risk neutral.However,an expected utility setup with concave utility can effectively arise if there are financial imper-fections as,for example,assumed in Froot,Scharsfstein,and Stein (1993).If such financial imperfections are present,the value of the firm will be given by a concave transformation of the payoffs,which is effectively identical to our expected utility setup.Another motivation for risk-averse firm behavior is that executives with major financial and human capital investments in their own firm wish to avoid risky positions.9We assume that a third party,perhaps the government,covers the excess losses to policyholders.This avoids the complications of any impact on policyholder demand.966Nondiversification Traps in Catastrophe Insurance MarketsInsurers face two constraints—one that limits the aggregate amount of their risks,and the other that limits the size of individual risks.The aggregate limitation is driven,for example,by capital requirements.This aggregate limit is imposed by assuming that each insurer can bring at most N risks“to the table.”Thus,we have1≤s≤M,1≤j≤Ns.The second constraint is that each risk X i is indivisible,so it cannot be split between insurers in a primary insurance market.As discussed in the Introduction,real-world catastrophe insurance markets are segmented in this way because relatively few insurers operate in each state and in each line.When returns are independently normally distributed,it is well known that one can always add an asset to a portfolio and strictly increase the agent’s utility via the appropriate selection of weights.In this case,U j,s is strictly increasing in s for each j(an immediate consequence of Samuelson,1967).In this situation, we can expect a reinsurance market to work well and insurance to be offered for a maximal number of risks,N M.The argument is based on the fact that each insurer will choose to diversify fully,regardless of what the other M−1 insurers do.We call this the traditional situation.The situation is very different when we have limited liability and heavy-tailed distributions.We consider i.i.d.Bernoulli-Cauchy distributed risks˜X i, i.e.,˜Xi=μ,with probability1−q X i,X i∈Sν,σ,with probability q,where X i∈Sν,σare i.i.d.Cauchy r.v.’s with location parameterνand scale parameterσ.In other words,the r.v.’s X i are“mixtures”of degenerate and Cauchy r.v.’s.Clearly,the risks˜X i can be written as˜Xi=μ(1− i)+X i i=μ+(ν−μ) i+σY i i,(4) where i are i.i.d.nonnegative Bernoulli r.v.’s with P( i=0)=1−q,P( i= 1)=q and Y i∈S0,1are i.i.d.symmetric Cauchy r.v.’s with scale parameter σ=1that are independent of i s.For the above distributions,we say that˜X i∈˜S qμ,ν,σ.Here,μcan be thought of as the premium an insurance provider collects to insure against events that occur with probability q.For q 1,this distribution is qualitatively similar to distributions for catastrophic risks:There is a small probability for a catastrophe to occur.However,if it does occur,the loss may be very large due to the heavy left tail of the Cauchy distribution.We use the Cauchy distribution for its analytical tractability(even though it—similar to the normal distribution,used, e.g.,in Cummins(2006)—has a nonzero right tail,which does not have a meaningful interpretation for catastrophic events).We assume limited liability (k<∞)and the power utility function u(x)=(x+k)α,α∈(0,1).Clearly, under the above assumptions,the expected utility for Bernoulli-Cauchy risks always exists.967The Review of Financial Studies /v 22n 32009Number of risks, jE x p e c t e d u t i l i t y , U (z j ,s )Figure 2Expected utility for insurers under different risk-sharing alternativess denotes the number of insurers sharing risks.j denotes the total number of risks.U (z j ,s )denotes the expected utility of an insurer as a function of j and s .Parameters:Liability k =100,total number of insurers M =5,maximum number of risks per insurer N =20,risk parameters:σ=1,ν=−9,μ=1,α=0.0315,and q =5%[see Equation (4)].See Appendix for Section 2.2for closed-form solution.In Figure 2,we show expected utility for different total numbers of projects,j ,and numbers of agents involved in risk sharing,s ,with parameters k =100,σ=1,μ=1,ν=−9,N =20,M =5,α=0.0315,and q =0.05.There is a crucial difference compared to the traditional situation.For a moderate number of risks,there is no way to increase expected utility compared to staying away from risks altogether.An insurer has the option of not entering the market and must therefore earn a utility premium to be willing to take on risks (i.e.,to offer insurance).No insurer will therefore choose to invest in risks that cannot be pooled.Moreover,if an insurer believes that no other insurer will pool risks,he will not take on risks,whether he can pool them or not.Thus,even though the situation with full diversification and risk sharing (U N M ,M )is preferred over the no-risk situation (U 0,1),at least four insurers must agree to pool risk for risk sharing to be worthwhile.In this situation,there may be a coordination problem:Even though all agents would like to reach U N M ,M ,they may be stuck in U 0,1.Clearly,the limited liability assumption is important:If liability were unlimited,no agent would ever take on risks.The situation would be as in Ibragimov (2004,2005),where diversification is always inferior.However,we note that the probability 968Nondiversification Traps in Catastrophe Insurance Marketsfor default in the situation with full pooling and diversification is small:it isapproximately0.3%.The expected utility assumption is not crucial.Similar results would arise ina value-at-risk(VaR)framework;for example,with agents who trade off VaRversus expected returns for some risk levelα.The crucial property of the U j,scurves is that they are“U-shaped”in s.In Ibragimov and Walden(2007),itis shown that similar U-shaped curves occur as a function of diversificationwhen the VaR measure is used.The specification in a VaR framework wouldbe U j,s=F(μ,W),μ=E(V(z j,s)),W=V a Rα(V(z j,s)),with∂F/∂μ>0, and∂F/∂W<0,and the analysis would be similar to the analysis we carryout in this paper.Our argument so far has been informal.We next make these diversifica-tion results rigorous by introducing a model of a reinsurance market,wherecoordination plays a role—the diversification game.We will show that in thetraditional situation,the only equilibrium is a diversification equilibrium,whereN M risks are insured,whereas in the situation with heavy tails there is both a diversification equilibrium and a nondiversification equilibrium in which no insurance is offered.2.3A reinsurance marketWe analyze a market in which insurance providers sell insurance against risks.For simplicity,we model the market in a symmetric setting:participants inreinsurance markets share risks equally.The setup is a two-stage game thatcaptures the intuitive idea that insurance has to be offered before reinsurancecan be pooled.The decision whether to offer primary insurance will be basedon beliefs about how well-functioning(the future)reinsurance markets willbe.If a critical number of participants is needed for reinsurance markets totake off,then nondiversification traps can occur.As we have already discussedthe intuition behind nondiversification traps,Sections2.3,2.4,and3focuson providing the theoretical foundation for the existence of nondiversificationtraps.The two-stage diversification game describes the market.In thefirst stage,agents(insurance providers)simultaneously choose whether to offer insuranceagainst a set of i.i.d.risks.In the second stage,the reinsurance market is formedand each agent chooses whether to participate or not.Agents who choose notto offer primary insurance are allowed to participate in the reinsurance market.Finally,all risks of agents participating in the reinsurance market are pooledand outcomes are realized and shared equally among participating agents. 2.3.1Insurance market There are M≥2agents(also referred to as insur-ance providers,insurance companies,or insurers).We use m,1≤m≤M to in-dex these agents.There is a set of i.i.d.risks,X,where each risk has c.d.f.F(x). Each agent chooses to take on a specific number of risks,n m∈{0,1,2,...,N}, where N denotes the maximum insurance capacity,forming a portfolio of risks969。