This paper deduces a model for pricing catastrophe risk bond based on the representative agent in the framework of incomplete market.

This paper introduces three typical catastrophe bonds pricing model—LFC model,Wang!two-factor model,and Christofides model,which are based on the framework of risk pricing.

Proceed from the structure of catastrophe bonds, by analyzing merits and demerits of catastrophe bonds and feasibility of bonds issuing, the paper represents adequately why can catastrophe bonds develop better than other products of the securitization of catastrophe risks in the financial markets.

Double exponential jump diffusion model for catastrophe bonds pricing;

Insurance risk securitization——catastrophe bond;

The existing catastrophe bond pricing models are all based on the standard finance theory.

How to Develop the CAT bond of Our Country;

In this paper,a market mechanism cat bond is introduced into government rescue,combining the foreign matured method with Chinese real situation.

To discuss the feasibility of the issuance of CAT bond in China,the paper applies Principal Components Analysis to create an index to measure the comprehensive maturity of capital and insurance market in a country.

Securitization of Catastrophe Risk and the Development of CAT Bonds in China;

More and more insurers and enterprises employ CAT bonds to manage catastrophe risk.