Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1144075 | Systems Engineering Procedia | 2011 | 6 Pages |
Abstract
China is one of the countries with most serious natural disasters where the damage caused by flood is larger than any other natural disasters. The introduction of catastrophe bonds would be a good channel for transferring the catastrophic risk. Therefore, based on the principle of non-life actuarial, this paper figured out the distribution fitting for the losses and occurrences of flood disasters and applied Monte Carlo simulation to calculate the total loss of flood disasters and its corresponding probability in China. By using the capital asset model and Catastrophe bond pricing model, the yields and prices of flood disaster bond can be obtained, which can be referred and learned for the issuance of flood disasters bonds in the future.
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