Securitizing property catastrophe risk

Abstract
The trading of property catastrophe risk using standard financial instruments such as options and bonds enables insurance companies to hedge their exposure by transferring risk to investors, who take positions on the occurrence and cost of catastrophes. Although these property catastrophe risk instruments are relatively new products, they have already established an important link between the insurance industry and the U.S. capital market.
Volume
2
Page
1 ‐ 6
Number
9
Year
1996
Keywords
securitization; catastrophe risk; property; Derivatives
Categories
Catastrophe Risk
Reinsurance and Alternative Risk Transfer
Publications
Current Issues in Economics and Finance
Authors
Borden, Sara
Sarkar, Asani