Securitization Of Assurance Risk

The paper is made up of 6 parts. The first part makes a general introduction of the condition of Insurance industry, and traditional methods of risk transformation. Then get the conclusion that securitization is an effective way of risk transformation for Insurance Companies, and this will be a trend in a long perspective.The second part begins with the current condition of Insurance Securitization, and then presents the objects of securitization, including: Securitization of future cash flow, Securitization of Insurance Reserve, and Securitization of mortality risk.The third part just makes a general introduction of option and derivatives to prepare for the following discussion.The forth part starts the research of pricing mortality risk Securitization products. It gives the specific model of cash flow between the three agencies and then creates a certain kind of mortality risk securitization product. Then we find the pricing method of our own product. In addition, we give the reason and feasibility.The fifth part first introduces the pricing theory of derivatives, and based on this theory, we find the suitable method for mortality risk securitization products. By hard working, we finally gain the formula for the product on our certain assumptions.And the last part includes a conclusion of the whole paper, and gives the creative parts and points that can be developed further. On the other hand, it makes some wishes on the development of Insurance risk securitization.The purpose of this paper is that it makes some investigations from different aspects of the contents and methods of Insurance risk securitization, and if this text could provide another method for Insurance risk securitization, it will be the author's honor.