Pricing Of American Catastrophe Insurance Futures Options And The Significance Of Using For Reference

With the development of world economy, natural disasters occurring frequently, and constantly change of the nature of the risk, it puts forward new challenges to the insurance operator. As a result, the Chicago Board of Trade(CBOT) created and launched the first disaster insurance futures and options in1992.At first, this paper introduces the causes of insurance futures, and then in-troduces the economic function and significance of disaster insurance futures and options, insurance futures and options of insurance can provide a hedge risk man-agement for reinsurance market, and to further strengthen market value function, make the risk faced by less than pure risks when trading futures. Then I make a summarization about insurance futures. Under the condition of a certain mar-ket, using the method of partial differential equation and martingale method of risk neutral pricing and insurance actuarial pricing three methods, gives the con-tinuous case, geometric average pricing formula of European call insurance futures and options. Finally, I take the pricing formula of the three methods to proceed comparative analysis.Our country has not yet introduced Insurance futures and options, Because of economic function and significance of insurance futures and options, its emergence, development and expansion is inevitable in China.Therefore, exploring the disas-ter insurance futures and options pricing have direct significance for introducing insurance futures and options in our country.