Title :
Pricing Mode and Insurance Options Strategy of Infrastructure Project
Author_Institution :
Central Univ. of Finance & Econ., Beijing
Abstract :
At first the risk in infrastructure project is analyzed in the paper, and as a good path the project insurance is put forward for transferring latent risk. Then the relationship between the option and insurance industry is revealed, the intrinsic value of insurance risk options is studied, the feasibility of the insurance options and the characteristics of the options products are analyzed,. At the same time, the suggestion of the development of insurance options market at present is pointed out. The traditional options pricing theories in the insurance for infrastructure project are discussed, and the pricing mode of insurance option based on lower probability event is put forward according to the reality condition. Undoubtedly the valid implement of the insurance options will dissolve and control the huge risk during the lifecycle of infrastructure project, thus it could alleviate the pressure in public finance, which benefits the stability of society.
Keywords :
insurance; pricing; probability; project management; public finance; risk analysis; infrastructure project; insurance option strategy; insurance risk option; pricing mode; probability; project insurance; public finance; reality condition; risk analysis; Conference management; Economic forecasting; Engineering management; Financial management; Forward contracts; Insurance; Pricing; Project management; Risk analysis; Risk management; infrastructure project; insurance options; pricing mode; risk management;
Conference_Titel :
Management Science and Engineering, 2007. ICMSE 2007. International Conference on
Conference_Location :
Harbin
Print_ISBN :
978-7-88358-080-5
Electronic_ISBN :
978-7-88358-080-5
DOI :
10.1109/ICMSE.2007.4422196
