As a solution to the longevity risks in annuity business we consider securitizations which transfer the risks to the financial markets. We apply the classical Lee-Carter model to generate the future stochastic survival distribution. We show a method to design the survivor bonds using the...

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...