High Class Call Girls Nagpur Grishma Call 7001035870 Meet With Nagpur Escorts
Cat
1. 12.01.2012
CAT-DERIVATES
NEW WAY TO INSURE CATASTROPHE RISK
Daniel Meyer
Daniel Meyer
2. INTRODUCTION
Increase of natural disasters since 1970
Four times more a year from 100 up to 400 times
Hurricane Andrew (1992) and Northridge earthquake
(1994) resulted in 30 billion USD in insured property
losses
Possible rise of catastrophe losses up to 100 billion USD
Decrease of losses caused by
population growth
urban conglomerations
climatic change
2
12.01.2012 Daniel Meyer
3. PROBLEM
The money of the insurance market is not sufficient
Traditional reinsurances are inappropriately
100 billion USD correspond to 30% of the equity capital
of US insurance market
The occurrence of natural disasters will definitely
increase
Solution:
More efficient mechanism for financing CAT losses
Need of a new source of capital
3
12.01.2012 Daniel Meyer
4. SOLUTION FOR INSURANCE COMPANIES
Transfer catastrophe risk to the capital stock market
Attractive investment possibilities for new investors
Need of new financial products:
Cat-Bonds
Cat-Options
4
12.01.2012 Daniel Meyer
5. CAT-BONDS
Simple finance product
Issued by a insurance company
fix payments addicted to a natural desaster
Three characteristics if a special trigger point is
achieved:
Loss of the whole money
Decrease of the monthly payments
No exposure payments anymore
5
12.01.2012 Daniel Meyer
6. CAT-OPTIONS
More complex Instrument
Traded on a stock exchange
Linked to a Catastrophic-Loss Index
Limited amount of losses or gains
6
12.01.2012 Daniel Meyer
7. CONCLUSION
New ways to insure regions with high catastrophe risk
are needed
The capital market is a good alternative to the insurance
market as a source of capital
About 13 trillion USD
Cat-Derivates are a good alternative for investors to
traditional financial products
7
12.01.2012 Daniel Meyer