Dr Emmanuel Kypraios presented his paper “Trading Rare Events and Status Inconsistency” in the Strategic Management Special Interest Group of the European Management Conference Annual Meeting 2020. His paper won the Best Paper Award 2020 in the Microfoundations of Strategy Track. Dr Kypraios studies the catastrophe bond market, where insurers and reinsurers “trade rare events” with investors, and explores how third-party quality evaluations, such as credit ratings, influence investor decision-making. While credit ratings should simplify decision-making by providing much needed guidance in the face of uncertainty due to rare events, the empirical analysis reveals that under certain conditions the opposite is true. Inconsistency between credit ratings can penalize insurances and reinsurances, looking to transfer some of their extreme risk to the capital markets, with serious financial implications for the insurance sector.