Insurance Linked Securities [electronic resource] : The Role of the Banks /
Weber, Christoph.author.
Securitisations of insurance risk as new methods of risk transfer have been emerging in the global financial market during the recent twenty years. Christoph Weber analyses the techniques of traditional methods in comparison with securitisations for life- and non-life insurance risk. During his stay for expert interviews in the USA in October 2008 the investment bank Lehman Brothers defaulted triggering one of the deepest global economic crises in history. Strengths and weaknesses of the different products became obvious. In addition, an online survey about the market status and the banks’ role is analysed. Readers get an insight into the drivers and obstacles the different stakeholder groups face.
Description based upon print version of record.
Foreword; Preface; Contents; List of Figures; List of Tables; Chapter 1 Introduction; 1.1 Problem description and definition; 1.2 Objective of the thesis; 1.3 Methodology; Chapter 2Insurance Business and its Risk; 2.1 Risk and insurance; 2.1.1 Classification of risk faced by insurers; 2.1.2 CIassification of risk by insurance regulators; 2.1.3 Peril and hazard; 2.2 Insurance; 2.2.1 The basics of insurance mathematics; 2.2.2 Economical versus insured losses; 2.2.3  The Criteria of insurability; 2.2.4 Insurance, gambling and speculation; 2.2.5 Evaluation and quantification of losses
2.3 Risk management2.3.1 Objectives of risk management; 2.3.2 Steps of the risk management process; 2.3.3 Changes in risk management due to Solvency 2; 2.4 Risk and retum; 2.4.1 Insurance pricing; 2.4.2 Reserves; 2.4.3 Investments of the insurance sector; Chapter 3 The Insurance Industry; 3.1 Primary insurance; 3.1.1 Non-Iife insurance; 3.1.2 Life insurance; 3.2 Credit insurance and surety; 3.3 Monoline insurance; 3.4 Reinsurance; 3.4.1 Non-Iife reinsurance; 3.4.2 Life reinsurance; Chapter 4 Methods of Risk Transfer; 4.1 Traditional methods; 4.1.1 Reinsurance and retrocession
4.2 Alternative risk transfer4.2.1 Risk carriers; 4.2.2 Finite solutions; 4.2.3 Multi-risk products; 4.2.4 Derivatives; 4.2.5 Contingent capital; 4.2.6 Reinsurance side-cars; 4.2.7 Insurance-related securitisation; 4.2.8 Summary and evaluation of ART instruments; Chapter 5 Insurance Linked Securities; 5.1 Securitisation; 5.2 Lire insurance securitisation; 5.2.1 Reserve funding securitisation; 5.2.2 VaIue-in-force securitisation; 5.2.3 Residual commission securitisation; 5.2.4 Risk transfer securitisation; 5.2.5 Life settlement securitisation; 5.2.6 Summary and evaluation of life ILS
5.3 Non-Iife insurance securitlsation5.3.1 Catastrophe bonds; 5.3.2 Non-catastrophic insurance securitisation; 5.4 Insurance related CDOs; 5.4.1 Funding eno pools; 5.4.2 Cataslrophe bond CDOs; 5.4.3 Relnsurance recelvable CDO.; 5.4.4 Summary and evaluation of non-life ILS; Chapter 6 The Perspectives of the Stakeholders; 6.1 Accountants and regulators; 6.1.1 The global approach to standardisation; 6.1.2 International Financial ReporIing Standards; 6.1.3 Snpervision - the changes due to Solvency 2; 6.1.4 Quantitative assessment by means of Pillar 1
6.1.5 Digression: Value at Risk and Expected Shortfall6.1.6 EU-harmonisation effects in respect or ILS; 6.1.7 Accounting and supervision in the US; 6.1.8 Outlook to further reforms; 6.1.9 Results or the interviews regarding accountants and regulators; 6.2 Insurers and reinsurers as sponsors; 6.2.1 The Integrated management of risk and capital; 6.2.2 Capital management; 6.2.3 Asset-Liability-Management; 6.2.4 Hybrid bonds and risk securitisation; 6.2.5 Results of the interviews regarding sponsors; 6.3 Rating agencies and risk modelers; 6.3.1 Rating agencies' services
6.3.2 Importance of enterprise risk management and capital for insurer's ratings
Includes bibliographical references and index.
Securitisations of insurance risk as new methods of risk transfer have been emerging in the global financial market during the recent twenty years. Christoph Weber analyses the techniques of traditional methods in comparison with securitisations for life- and non-life insurance risk. During his stay for expert interviews in the USA in October 2008 the investment bank Lehman Brothers defaulted triggering one of the deepest global economic crises in history. Strengths and weaknesses of the different products became obvious. In addition, an online survey about the market status and the banks’ role is analysed. Readers get an insight into the drivers and obstacles the different stakeholder groups face.
Insurance.
Insurance.