In an attempt to transfer the loss rate risks in motor insurance to the capital market, we use the tranche technique to hedge the motor insurance risks. This paper illustrates AXA and their securitization of French motor insurance in 2005 as an example. Though this application is new, this...

Motor insurance linked securities are developed in modern time to adopt into the contemporary financial market. They create new opportunities for the investors in the financial market and provide great diversification to the traditional assets normally offered. They also benefit the insurers by...

In an attempt to manage the risk of mismatch between the actual claims and the anticipated claim amounts in motor insurance pool, we introduce a few new concepts of motor loss ratelinked securities such as motor loss rate options and motor loss rate swaps. These hybrid derivatives can transfer...