Alternative Risk Transfer

Acknowledgements

Biography

PART I: RISK AND THE ART MARKET

1 Overview of Risk Management

1.1 Risk and return

1.2 Active risk management

1.3 Risk concepts

1.4 Outline of the book

2 Risk Management Drivers: Theoretical Motivations, Benefits, and Costs

2.1 Maximizing enterprise value

2.2 The decision framework

2.3 Coping with market cycles

2.4 Accessing new risk capacity

2.5 Diversifying the credit risk of intermediaries

2.6 Managing enterprise risks intelligently

2.7 Reducing taxes

2.8 Overcoming regulatory barriers

2.9 Capitalizing on deregulation

3 The ART Market and its Participants

3.1 A definition of ART

3.2 Origins and background of ART

3.3 Market participants

3.4 Product and market convergence

PART II: INSURANCE AND REINSURANCE

4 Primary Insurance/Reinsurance Contracts

4.1 Insurance concepts

4.2 Insurance and loss financing

4.3 Primary insurance contracts

4.4 Reinsurance and retrocession contracts

5 Captives

5.1 Using captives to retain risks

5.2 Forms of captives

5.3 Tax consequences

6 Multi-risk Products

6.1 Multiple peril products

6.2 Multiple trigger products

PART III: CAPITAL MARKETS

7 Capital Markets Issues and Securitization

7.1 Overview of securitization

7.2 Insurance-linked securities

7.3 Structural features

7.4 Catastrophe bonds

7.5 Other insurance-linked securities

8 Contingent Capital Structures

8.1 Creating post-loss financing products

8.2 Contingent debt

8.3 Contingent equity

9 Insurance Derivatives

9.1 Derivatives and ART

9.2 General characteristics of derivatives

9.3 Exchange-traded insurance derivatives

9.4 OTC insurance derivatives

9.5 Bermuda transformers and capital markets subsidiaries

PART IV: ART OF THE FUTURE

10 Enterprise Risk Management

10.1 Combining risks

10.2 Developing an enterprise risk management program

10.3 End-user demand

11 Prospects for Growth

11.1

ERIK BANKS has held senior risk management positions at several global financial institutions, including XL Capital, where he was Partner and Chief Risk Officer of the Bermuda reinsurer's derivative subsidiary, and Merrill Lynch, where he spent 13 years managing credit and market risk teams in Tokyo, Hong Kong, London and New York. Mr. Banks has written various books on risk management, emerging markets, derivatives, merchant banking, and electronic finance.