2006 Hurrican Risk Case

Explain how the insurance industry works (not how an insurance contract works). Explain why insurance companies exist and how they make money.

State the role of re-insurance.

Calculate or explain the expected return from purchasing insurance (in general). State factors that determine the minimal acceptable rate of return for someone to want to purchase insurance.

Explain what Jose Martinez should do.

Analyze the catastrophe bond from the prospective of a well-diversified investor. Calculate or explain its expected return, volatility, and beta.

Explain what Suzanne Fuller should do.

Answer rating: 100% (QA)

2006 Hurricane Risk Case Analysis Insurance Industry Basics The insurance industry pools risk from many individuals and businessesspreading potential ... View the full answer