Open Access

Fabian Lassen

• The method of operation of auctions and their use in a variety of economic sectors is already well documented. Auctions are already in use for the Placement of reinsurance on a small scale. So why is it important to revisit this field, which has already been studied in such considerable detail? • Two researchers, Paul R. Milgrom and Robert B. Wilson of Stanford University, were honoured with the Nobel Prize in Economics in 2020 for their improvements in auction theory and the invention of new auction formats. • A trend towards automation is in the Placement of reinsurance is emerging. In this connection, a variety of InsurTechs and market initiatives, such as B3i and Ritablock, are dealing with various fields of application of blockchain technology. • The persistent low-interest-rate environment, together with existing competition and cost pressures from primary insurers, mean that insurers are in search of savings potentials. • Auctions are proving to be a successful model in many areas of the economy, e.g. in the allocation of frequencies in mobile communication, subsidies for wind farms or energy pricing.