How Disaster in Japan Impacts the Insurance-Linked Securities Market

LONDON, March 22, 2011 - The recent earthquake and tsunami have caused terrible devastation in
Japan. In addition to the loss of life and human suffering, this catastrophe
has resulted in massive economic damage.

Part of the economic losses will be absorbed by the insurance industry.
Investors in insurance-linked securities such as catastrophe ("cat") bonds
are also likely to be affected. Cat bonds with potential exposure to Japanese
earthquake peril have been sponsored by companies such as Swiss Re, Munich Re
and Platinum Underwriters. This catastrophic event is an important test of
insurance-linked securities as an asset class and risk transfer mechanism.

The growing need for information on this asset class is addressed in a
new book by Alex Krutov, Investing in Insurance Risk: Insurance-Linked
Securities - a Practitioner's Perspective, published by Risk Books.

The author, a leading authority on insurance-linked securities, insurance
securitization and reinsurance, offers a comprehensive guide to the products
bridging the gap between insurance and capital markets.

Investing in Insurance Risk brings together, for the first time in one
volume, all of the strategic and practical aspects of structuring, pricing,
trading, and managing insurance-linked securities on a portfolio basis.
Securities linked to both property/casualty and mortality/longevity risks are
covered. The book is broadly focused and covers a wide range of
insurance-linked securities, including cat bonds, insurance derivatives,
industry loss warranties, collateralised reinsurance, reinsurance sidecars,
value-in-force securities, life settlements, longevity-linked securities, and
other financial instruments.

Sharing his deep expertise as an insurance and investment professional,
Alex Krutov provides insights into techniques for analysing insurance-linked
securities and discusses principles for managing portfolios of insurance
risk, including portfolio optimization. The author places a particular
emphasis on catastrophe insurance risk.

Krutov also looks at insurance securitisation from the point of view of
insurance and reinsurance companies, analysing direct transfer of insurance
risk to the capital markets in the context of effective risk and capital
management.

This book is an essential resource for those active in the marketplace,
and for newcomers to the field. Krutov offers a clear practitioner's
perspective, expertly guiding the reader through this new and evolving
market.

About Risk Books

Risk Books is a world leader in books on the financial risk management
and derivatives markets. It is a division of Incisive Media, a leading global
provider of specialist business news and information.

    Contact:
    Phil Jackson
    +44(0)20-7004-7467
    philip.jackson@incisivemedia.com

    www.riskbooks.com

Contact: Phil Jackson, +44(0)20-7004-7467, philip.jackson at incisivemedia.com