METHODS AND APPARATUS FOR SECURITIZING INSURANCE, REINSURANCE, AND RETROCESSIONAL RISK

摘要

A method and apparatus of securitizing insurance, reinsurance and retrocession risk is provided The system provides a vehicle whereby investors may directly participate in such risk. The system includes establishing a limited-life business entity. Capital is raised through the sale of common and/or preferred shares in the business entity. The capital is invested against which the business entity assumes premium and risk liability After a first predetermined penod of time (i.e., an underwriting phase), the business entity stops underwriting risks for premium and gives investors options to liquidate shares in the business entity for cash or in the form of a roll over to a similar business entity.