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We identify a new benefit of index or parametric triggers. Asymmetric information between reinsurers on an insurer's risk affects competition in the reinsurance market: reinsurers are subject to adverse selection, since only high-risk insurers may find it optimal to change reinsurers. The result is high reinsurance premiums and cross-subsidization of high-risk insurers by low-risk insurers. A contract with a parametric or index trigger (such as a catastrophe bond) is insensitive to information asymmetry and therefore alters the equilibrium in the reinsurance market. Provided that basis risk is not too high, the introduction of contracts with parametric or index triggers provides low-risk insurers with an alternative to reinsurance contracts, and therefore leads to less cross-subsidization in the reinsurance market. Copyright (c) The Journal of Risk and Insurance, 2009.

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What is special about the German-speaking education system is that there are two types of higher education institutions. While classical universities do academic teaching, so-called universities of applied sciences (UAS) focus more on practical training for the labour market. This chapter presents the experiences of two professors with practice-integrated teaching at two UAS that ensure employability to a large extent. The common setting of the four courses presented is that students work on real business cases, practical challenges, and real fields of innovation. Methodologically, design think and SCRUM are used. It is described for these cases how the design of the course contributes to students developing innovative and digital approaches for real companies. The chapter concludes with a compilation of good practices that emerged from experiences. These can serve as input for other teachers to design their own practice-integrated courses.