Catastrophe Derivatives and ILWs

INDEX-LINKED CONTRACTS (adsbygoogle = window.adsbygoogle || []).push({}); Traditional insurance and reinsurance contracts are based purely on direct indemnification of the insured or reinsured for the losses suffered. Another way to transfer insurance risk, which is particularly important...

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Catastrophe Model Structure

CATASTROPHE MODEL STRUCTURE A catastrophe model that can be used in modelling insurance losses includes all the primary elements mentioned above. It starts with generating a natural catastrophe event such as a hurricane or an earthquake, then determines its physical characteristics at the locations...

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Modelling Catastrophe Risk Part 2

SEASONALITY OF THE HURRICANE RISK IN INSURANCE-LINKED SECURITIES The main hurricane risk of insurance-linked securities, that of North Atlantic hurricanes, is seasonal as opposed to following uniform distribution. The hurricane season officially starts on June 1 and ends November 30. Very few hurricanes...

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