PL EN


2011 | 875 | 29-46
Article title

Zastosowanie ubezpieczeniowych instrumentów pochodnych jako sposob alternatywnego transferu ryzyka katastroficznego

Title variants
EN
INSURANCE DERIVATIVES AS AN ALTERNATIVE METHOD OF TRANSFERRING CATASTROPHIC RISK
Languages of publication
PL
Abstracts
EN
The article examines insurance derivatives traded on capital markets, focusing on their structure and application mechanisms. The main function of these derivatives is to provide collateral funds in cases of natural disaster. Insurance derivatives don’t serve as an indemnification contract for financing a particular cedant’s losses, so substantial basis risk is a serious consideration. On the other hand, less moral hazard and the low cost of coverage play an important role. Enhancing risk diversification, derivatives make it possible to cover disaster risks previously considered non-insurable. That insurer and re-insurer financial results are stabilised by minimising the ruin probability in case of the rapid growth of loss-ratio is another advantage of insurance derivatives. Developing these instruments requires the insurance sector have an appropriate level of maturity and those participating not only be prepared financially and technologically but also possess the proper know-how.
Contributors
  • Uniwersytet Ekonomiczny w Krakowie, Katedra Ubezpieczen, ul. Rakowicka 27, 31-510 Kraków, Poland
References
Document Type
Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.desklight-8d71c0be-f982-4321-b68f-cab6b30d688a
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