Abstract
This paper explains securitization of insurance risk by describing its essential components and its economic rationale. We use examples and describe recent securitization transactions. We explore the key ideas without abstract mathematics. Insurance-based securitizations improve opportunities for all investors. Relative to traditional reinsurance, securitizations provide larger amounts of coverage and more innovative contract terms.
Volume
May
Page
19-58
Year
1999
Categories
Financial and Statistical Methods
Asset and Econometric Modeling
Asset Classes
Asset-Backed Securities
Actuarial Applications and Methodologies
Capital Management
Capital Sources
Actuarial Applications and Methodologies
Valuation
Valuing Contingent Obligations
Actuarial Applications and Methodologies
Investments
Business Areas
Reinsurance
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
Publications
Casualty Actuarial Society Discussion Paper Program
