| Though we enjoy a high level of civilization with the science and technology rapid marching and advancing, mankind is still vulnerable to natural catastrophes due to his inability to accurately forecast and control them. With the urbanization and population concentration natural catastrophe impose greater impacts on human beings. How to compensate for the great loss caused by catastrophe becomes an important issue.The government had always played a leading role in the catastrophic loss compensation. Since it has recognized the burden is too heavy to shoulder on, the government has determined to guide the insurance companies to elicit latent faculties.There used to be few catastrophe risk control instruments for the insurance company to utilize. Self-financing and reinsurance are two traditional methods. However, compared to the large scale of the natural catastrophes, self-financing is too fragile a means. The problem of reinsurance is that it can't find new capital sources and the memorize effect of price and credit risk are unavoidable. To deal with these problems, catastrophe securitization comes into being.Catastrophic risk securitization starts from 1990s, with an astounding developing speed. The research on the catastrophic risk securitization means a lot since it's a first-time combination of capital market and property insurance company. With the help of catastrophic risk securitization, insurance companies expand into a new market and the unbalanced cash flow is in balance again. Catastrophic risk securitization also creates new investment products and optimizes portfolio for investors. Catastrophic risk securitization lessens the financial burden on the treasury through the commercialization on the catastrophic loss compensation.The dissertation applies normative analysis and positive description and focuses on the comparative research of several catastrophic risk control methods. Based on it, we analyze the catastrophic risk securitization instruments designing and issuing system and further point out the difficult issues. The purpose of the article is to introduce the catastrophic risk securitization into Chinese insurance market and survey the possible obstacles.There're five chapters in all. The first two chapters analyze the general questions on catastrophic risk securitization. The following three chapters carry out some preparatory work on the introduction of catastrophic risk securitization into china, analyze and comment on the catastrophic risk securitization instruments designing and issuing process and survey the "index system". Finally, we raise some policy suggestions.The first chapter defines the principles and structure of catastrophic risk securitization and comments on the current issues and future of catastrophic risk securitization. This step reveals the subject of the article, namely, insurable natural Catastrophe. The author simplifies the catastrophic risk securitization into a financial method, which alters the cash flow, amount and timing. According to the different altering method of the cash flow, we divide the catastrophic risk securitization into risk financing and risk transferring and introduce several catastrophic risk securitization instruments: Cat Bonds, Cat Swaps, Cat-Equity puts. The author analyzes the structures of the instruments and comments on the merit of them. The author reviews the catastrophic risk securitization history and the recent trends abroad. He also introduces The Chicago Board of Trade, The Bermuda Commodities Exchange and Catastrophe Risk Exchange and analyzes the catastrophic risk securitization instruments transacted in these markets, such as Cat Bonds, Contingent Surplus Notes, Cat-E-Puts, and Exchange-Traded Cat Options or Futures, and compares their merits. The last chapter analyzes the possible obstacles of the catastrophic risk securitization and forecast the possible future of catastrophic risk securitization.The second chapter analyzes the catastrophic risk securitization origin. Catastrophic risk securitizati... |
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