the occurrence of a natural disaster, the reconstruction can be financed with catastrophe bonds (CAT bonds) or reinsurance … government. The calibration of the CAT bond is based on the estimation of the intensity rate that describes the earthquake … process from the two sides of the contract, the reinsurance and the capital markets, and from the historical data. The results …

analyzed in this paper reinsurance markets are unable to cope with this risk completely. Insurance-linked securities, such as …