Insurance futures

Document description

One objective of the Working Party has been to overcome the learning curve that investors face, be they speculator or hedger. We consider the uses of Insurance and futures and options contracts as proxies for reinsurance - futures behave like proportional reinsurance whereas options behave like non-proportional reinsurance. We have also looked at pricing, although much work remains to be done in this area (but will it be published?!). The dynamics of an insurance futures market have been a particular interest for us, since the survival of the CBOT contracts appears to lie in the balance at the time lessons to be learnt from other futures markets.