Post by Sapphire Capital on Oct 3, 2008 11:54:20 GMT 4
Bond as a Tool of Mortality Risk Securitization
Aleksandra Malek
Bank i Kredyt, No. 5/2008, pp. 36-49, 2008
Abstract:
Mortality risk concerns both higher and lower than expected mortality developments.
The first aspect is linked to terrorism attacks, natural catastrophes and new classes of diseases, while the second one is focused primarily on retirement products. However, the crucial question of the second aspect is the aggregate longevity risk, concerning the overall population and annuities providers.
The idea of the insurance risk transfer has been developed by the P&C insurers and reinsurers, as an answer to catastrophic loss accumulation in the last decade of the 20th century. New classes of risk, capital requirement verification and M&A growth have created the possibility of using bonds in life insurance.
The article analyses the opportunities and possibilities of the usage of bonds as a tool of mortality risk securitization and risk management.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1262751_code851390.pdf?abstractid=1262751&mirid=3
Aleksandra Malek
Bank i Kredyt, No. 5/2008, pp. 36-49, 2008
Abstract:
Mortality risk concerns both higher and lower than expected mortality developments.
The first aspect is linked to terrorism attacks, natural catastrophes and new classes of diseases, while the second one is focused primarily on retirement products. However, the crucial question of the second aspect is the aggregate longevity risk, concerning the overall population and annuities providers.
The idea of the insurance risk transfer has been developed by the P&C insurers and reinsurers, as an answer to catastrophic loss accumulation in the last decade of the 20th century. New classes of risk, capital requirement verification and M&A growth have created the possibility of using bonds in life insurance.
The article analyses the opportunities and possibilities of the usage of bonds as a tool of mortality risk securitization and risk management.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1262751_code851390.pdf?abstractid=1262751&mirid=3