Securitization of disability risk via bonds and swaps

摘要

Purpose - The purpose of this paper is to show that healthier lifestyles, medical progress and the change of working conditions have been identified as potential sources for systematic disability risk. Design/methodology/approach - Thus, the aim of this paper is to provide a first discussion regarding the advantages and detriments in comparison with mortality-linked bonds and swaps as well as regarding potential disability-linked indices and the potential use. Findings - The discussion is followed by an introduction of a potential design and a corresponding valuation of disability bonds and swaps. Originality/value - However, no disability-linked securities have been defined and discussed so far.