Catastrophic events caused by naturaldisasters and human activities pose a uniquechallenge for insurers, because they make itdifficult to estimate expected claims and can causedisruption to the insurance market and imposesignificant costs on government, businesses andindividuals. The lack of available coverage ofthese risks in the market, due to the insolvency orunwillingness of insurers to ensure catastrophicevents, can significantly impede the economicrecovery and development of the country. For thisreason insurers have sought alternative ways ofcovering these extreme losses, and one of them, atransfer of the risk of insurance to the capitalmarkets represents the main subject of thisresearch. The aim of this maneuver is to presentthe advantages and disadvantages of theinstruments through which the transfer ofinsurance risk to financial markets is carried out,as well as to indicate the legal and otherassumptions necessary for the functioning anddevelopment of this market.
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