Securitizing Property Catastrophe Risk
6 Pages Posted: 18 Jul 2007
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.
Keywords: securitization, catastrophe risk, property, derivatives
JEL Classification: G10, G22
Suggested Citation: Suggested Citation
Borden, Sara and Sarkar, Asani, Securitizing Property Catastrophe Risk. Current Issues in Economics and Finance, Vol. 2, No. 9, August 1996, Available at SSRN: https://ssrn.com/abstract=1000977
Do you have negative results from your research you’d like to share?
Recommended Papers
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.