Abstract
After surveying various instruments used to finance catastrophe insurance, this paper demonstrates a method for analyzing the cost of financing catastrophe insurance with the following instruments: (1) insurer capital; (2) reinsurance; and (3) catastrophe options. The procedure first quantifies the cost of financing in terms of the cost of those instruments. The method then permits searching for a mix of instruments that minimizes the cost.
Volume
Summer
Page
119-148
Year
1998
Categories
Actuarial Applications and Methodologies
Enterprise Risk Management
Risk Categories
Financial Risks
Financial and Statistical Methods
Asset and Econometric Modeling
Asset Classes
Other Securities
Actuarial Applications and Methodologies
Dynamic Risk Modeling
Dynamic Financial Analysis (DFA);
Financial and Statistical Methods
Extreme Event Modeling
Natural Peril Modeling
Actuarial Applications and Methodologies
Dynamic Risk Modeling
Reinsurance Analysis
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
Traditional Risk Load (Profit Margin);
Publications
Casualty Actuarial Society E-Forum
