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2017 | OriginalPaper | Chapter

12. Insurance-Linked Securities: Structured and Market Solutions

Authors : Annette Hofmann, David Pooser

Published in: The Palgrave Handbook of Unconventional Risk Transfer

Publisher: Springer International Publishing

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Abstract

The traditional reinsurance markets face capacity limits. Global financial markets provide a much larger pool to diversify large (re)insurer risk. Insurance-Linked Securities (ILS) are a group of financial instruments, which are sold to institutional investors and whose value is affected by an insured loss event. ILS encompass multiple forms of risk-linked securitization such as CAT bonds, weather derivatives (WDs), contingent capital (CC), and Finite Re products. Their purpose is to provide more efficient ways to transfer large-scale risk by combining insurance and reinsurance techniques with capital market techniques.

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Metadata
Title
Insurance-Linked Securities: Structured and Market Solutions
Authors
Annette Hofmann
David Pooser
Copyright Year
2017
Book
The Palgrave Handbook of Unconventional Risk Transfer

Print ISBN: 978-3-319-59296-1

Electronic ISBN: 978-3-319-59297-8

Copyright Year: 2017

DOI
https://doi.org/10.1007/978-3-319-59297-8_12