Bank charges for the withdrawal of US dollar notes and for US dollar transactions are an exorbitant frictional cost
. In an attempt to mitigate such costs, suppliers set up bank accounts with the same banks as each of their largest customers, creating a myriad of bank accounts.
Our analysis demonstrates that this feature places limits on catastrophe bond penetration, even if the structure possesses frictional cost
advantages over reinsurance.
My concern with the regulation is not disclosure; it is the frictional cost
of disclosure and the unintended consequences of compliance.
"As a software company, Peregrine understands that customers experience considerable frictional cost
and operational challenges in integrating software applications and systems.
Global funds transaction network and Future50 FinTech pioneer seeks to further reduce frictional cost
of trading mutual funds, from fund manufacturer to end investor, by placing marketplace on a blockchain, the company said.
"That allows us to operate at a much lower price point, reducing frictional cost
Sustained competition reduces the frictional cost
of trading, creates trading opportunities through price discrimination and stimulates equity turnover in Europe.
The advent of browser-based technologies and data exchange protocols promised to overcome the frictional cost
of doing business across insurers, brokers and reinsurers.
The Cytora platform is powered by an AI risk engine designed to help insurance companies take frictional cost
out of their underwriting process, he said.
A great example of a frictional cost
is the loss load on many retrospectively rated reinsurance contracts.
The share of frictional cost
in the total cost of insurance ranges anywhere from 5 percent to 40 percent, Landry says.
As a workers' comp insurer, you may be providing essential services to your customers, but you do so at a frictional cost
to these customers.