In recent years the magnitude of catastrophic losses has been staggering.
Catastrophic events place significant financial demands on society.
In response to market conditions, the Chicago Board of Trade introduced catastrophe insurance futures and options in 1992. The futures are based upon a loss index consisting of specified losses reported by insurance companies. The latter can be modelled by a mixed Poisson or indeed Cox process. The current project works out the necessary mathematical theory for the analysis of these questions.