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How can non-life insurance linked securities be sustainable? (Mexico Case Study)

Author

Listed:
  • Mondher bellalah
  • Shirley Mardonez
  • Omar Masood

    (THEMA, Universite de Cergy-Pontoise
    Researcher of The Externado, University of Colombia
    Royal Business School, University of East London)

Abstract

The world is experiencing the development of new financial instruments to cope with natural catastrophes economic losses, this paper contributes to the forward movement of the discussion about the sustainability of one of these instruments known as non-life insurance linked securities. It shows a deep analysis of Mexico CAT bonds issuances and the application of a case event model that evaluates the correlation between the overall Mexican stock market and catastrophes in Mexico.

Suggested Citation

  • Mondher bellalah & Shirley Mardonez & Omar Masood, 2013. "How can non-life insurance linked securities be sustainable? (Mexico Case Study)," THEMA Working Papers 2013-18, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:2013-18
    as

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    File URL: http://thema.u-cergy.fr/IMG/documents/2013-18.pdf
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    References listed on IDEAS

    as
    1. Silke Finken & Christian Laux, 2009. "Catastrophe Bonds and Reinsurance: The Competitive Effect of Information‐Insensitive Triggers," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(3), pages 579-605, September.
    2. Dwight M. Jaffee & Thomas Russell, 1996. "Catastrophe Insurance, Capital Markets and Uninsurable Risks," Center for Financial Institutions Working Papers 96-12, Wharton School Center for Financial Institutions, University of Pennsylvania.
    3. David C. Croson & Howard C. Kunreuther, 1999. "Customizing Reinsurance and Cat Bonds for Natural Hazard Risks," Center for Financial Institutions Working Papers 99-34, Wharton School Center for Financial Institutions, University of Pennsylvania.
    4. J. David Cummins & Olivier Mahul, 2009. "Catastrophe Risk Financing in Developing Countries : Principles for Public Intervention," World Bank Publications - Books, The World Bank Group, number 6289, December.
    5. J. David Cummins, 2008. "CAT Bonds and Other Risk‐Linked Securities: State of the Market and Recent Developments," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 11(1), pages 23-47, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Sovereign risk; Natural disasters; Catastrophe cover; Public finance; Financial risk; Management; Insurance; Catastrophe bond.;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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