Zastosowanie ubezpieczeniowych instrumentów pochodnych jako sposob alternatywnego transferu ryzyka katastroficznego

• Authors: Grzegorz Strupczewski

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.

Keywords

EN

INSURANCE; RISK MANAGEMENT; ALTERNATIVE RISK TRANSFER; DERIVATIVES

• Publisher: Wydawnictwo Uniwersytetu Ekonomicznego w Krakowie
• Journal: Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie
• Year: 2011
• Issue: 875
• Pages: 29-46

Contributors

author

Grzegorz Strupczewski

• Uniwersytet Ekonomiczny w Krakowie, Katedra Ubezpieczen, ul. Rakowicka 27, 31-510 Kraków, Poland