AIR Modeling Technology Helps Securitize Cat Risk.Applied Insurance Research inc. has applied two of its modeling technologies to the securitization Securitization
The process of creating a financial instrument by combining other financial assets and then marketing them to investors.
Mortgage backed securities are a perfect example of securitization.
May also be spelled as "securitisation. of catastrophe risk.
The Boston-based catastrophe-modeling firm provided the risk analysis in support of the recently completed Trinom Ltd. transaction, which raised $161.8 million of coverage for Zurich Insurance Co.'s underlying insurance risk from U.S. hurricanes, U.S. earthquakes and European windstorms A European windstorm is a severe cyclonic storm that tracks across the North Atlantic towards northwestern Europe in the winter months. These storms usually track over the north coast of Scotland towards Norway but can veer south to affect other countries including England, Wales, .
An innovation in the transaction is AIR'S Advanced Component Method, which models buildings as configurations of structural and nonstructural components, each of which responds uniquely to the natural resonance between the building and incoming seismic waves seismic wave
Vibration generated by an earthquake, explosion, or similar phenomenon and propagated within the Earth or along its surface. Earthquakes generate two principal types of waves: body waves, which travel within the Earth, and surface waves, which travel along the .
Under the arrangement, which was brokered by Aon Capital Markets and Morgan Stanley To comply with Wikipedia's , the introduction of this article needs a complete rewrite. , recovery is triggered by AIR's estimation of losses to a notional portfolio resulting from qualifying hurricanes, windstorms and earthquakes.