Research On Catastrophe Securitization In The Framework Of Integrated Risk Management

Catastrophe risk securitization transfers catastrophe risk into financial markets, which can transfer catastrophe risk from limited resource insurance market to financial market with ample capital, extend the bounds of insurable risk, increase underwriting capacity. This important special characteristic enables catastrophe risk securitization to become one ideal alternative risk transfer mechanism.Meanwhile, the idea of Integrated Risk Management(IRM)appears which is accepted by more and more people. IRM emphasizes the combination of capital market and insurance market. Furthermore, securitization becomes an important tool for insurance companies to manage their risks. Naturally, IRM becomes theoretical basis of catastrophe risk securitization.This dissertation involves the following three parts:The first part is theoretical research. This dissertation states IRM is the theoretical basis of catastrophe risk securitization, and then studies the integration of financial market caused by catastrophe securitization. In addition, this dissertation introduces the basic products of catastrophe risk securitization and makes comparation between them. As the most successful product, catastrophe bond is specially analysed.The second part is empirical research. Shanghai agricultural insurance is taken as an example. A solution is proposed to transfer agricultural risk through catastrophe bond. What's more, the structure and the operation of catastrophe bond are designed as well. Based on this, this dissertation simulates the cash flow of agricultural catastrophe bond.Finally, this dissertation demonstrated that it is indispensable to develop the catastrophe securitization in China. Considering the situation of China, some suggestions on the development of catastrophe risk securitization are given.