Research On Insurance Risk Securitization In China

In recent years, the frequency of occurrence of catastrophic risk is rising, resultingin the loss continues to expand, in this context, the traditional insurance and reinsurancecan not meet the insurance needs of catastrophe risk. In order to solve the gap problem,a systematic and comprehensive understanding and grasp of the need for this emergingcatastrophe risk securitization of insurance risk transfer method.Insurance risk securitization in these emerging financial derivatives, catastropherisk dispersion extended to the capital market, rather than confined to the insurancemarkets. It is of the debts of the insurer, underwriting capacity, and improve the welfareof the policyholders, and the direction of investment and benefits of the investors, toimprove the capital structure of the capital markets and insurance markets, and promotethe efficient flow of capital to achieve the optimal allocation of the insurance resourceshave played a huge role. Insurance risk securitization theory system and graduallymature, strong theoretical and practical significance for the development and use ofinsurance risk securitization of financial instruments also played a very good referencefor China’s insurance industry in the catastrophe and reference.Firstly, a general introduction to the basic theory of the securitization of insurancerisk, the research, including the connotation of the securitization of insurance risk,resulting in reasons, and the main products, but also the necessity of China’s currentstage of development of insurance risk securitization and the feasibility of in-depthanalysis also pointed out that currently there are many factors restricting itsdevelopment. In addition, catastrophe bonds, for example, illustrates the designprinciples of insurance risk securitization, issue process, as well as the pricing of thedifferent types of catastrophe bonds were introduced. At the end of the article in China’sdevelopment of the insurance risk securitization should be divided into three stages, firstis to create the external environment of the development of the insurance risksecuritization, followed by a short-term priority should be given to the development ofcatastrophe bonds business, and finally when the conditions are the comprehensivedevelopment of the insurance risk securitization business.