대재해채권 발행을 통한 국가재보험 보완방안 연구

A Study on the Use of Cat Bond to Complement the Current Government Reinsurance Program

This study examines whether Cat Bond could be used to complement the current government reinsurance program which shoulders a heavy financial burden as crop insurance program continues to expand. We estimate bond issue volume and coupon premium to repay insurance indemnities in case of a catastrophic disaster through Monte Carlo simulation approach. In addition, we compare the fund stability between current government reinsurance program and Cat Bond by using volatility coefficient. The result shows that the coupon rate of Cat Bond is estimated between 1.59% and 23.85% depending on the level of principal loss rate, which could be attractive for investors. For the comparison of fund stability, the volatility coefficient of fund from Cat Bond is much lower than that of current government reinsurance fund, which implies that Cat Bond could contribute to improve the fund stability.