Designing the Non-Life Insurance Market Swaps in the Insurance Industry and Capital Market of Iran with Emphasis on Financial and Jurisprudential Dimensions

Risk and its management make one of the most important concerns of different firms and industries. Insurance is one of the most important institutions in this field. Also the origin of confidence is one of the most important pillars of the capital market that the insurance industry can easily provide for market participants. One of the new tools used by the insurance industry and the capital market for risk management in recent years is Insurance-Linked Securities. After the introduction of Insurance-Linked Securities into the insurance industry, there emerged a variety of securities in this industry. Catastrophe swaps are one of the Insurance-Linked Securities instruments for transferring risk on both sides of transaction in the insurance market. The idea of a trade-off for catastrophe swap can greatly help to form the market for the non-life insurance market swaps. In this paper, besides investigating the catastrophe swaps from the perspective of definitions, types, features, mechanisms, applications, advantages and disadvantages using the descriptive-analytical method, we attempt to present the final design of the non-life insurance market swaps including actors, pillars and instruments used in the market that are jurisprudentially and financially approved.