13107. SECURITIZATION: SPREADING DISASTER RISK IN THE INSURANCE INDUSTRY. Explains the why and how insurance companies engage in "securitization " - using catastrophe bonds, options, and futures, to transfer a portion of the disaster risk assumed by insurance companies to investors. Discusses all three types of instruments and their risks and applications. Provides historical background on the dramatic rise in the cost of property catastrophes. 11 pages, 9 footnotes, 6 bibliographic sources.