Insurance-Linked Securities (ILS) Pricing & Trigger Modeling
Seed: catastrophe_models, indemnity_vs_parametric_triggers, sponsor_reinsurance_profilesADVERTISEMENT - IN-ARTICLE
Implementation Guide
An ILS desk tool that prices catastrophe bonds and sidecars, comparing indemnity and parametric triggers, modeling basis risk and expected loss under peril scenarios to inform collateral, pricing spreads and investor suitability assessments.
💡 Expert Q&A Insights
Q: What is basis risk?
The divergence between parametric trigger payouts and actual sponsor loss.
Q: How to set triggers?
Balance actuarial accuracy and speedy payout needs; consider catastrophe model sensitivity.