bstactThis article first provides a description of the development of securitization in the insurance sector. It also presents the details of the securitization process. At the same time, the document outlines the reason for the request for securitization by describing the experience in the insurance sector. It then shows how securitization is applied in the insurance sector. Additionally, the paper includes the comparison between reinsurance and securitization from three aspects. Finally, he concludes on the advantages of securitization.IntroductionSecuritization is one of the most important innovations in the financial market. Compared to insurance and reinsurance, securitization has always been on the sidelines in the past. Even though the United States insurance industry had approximately four trillion dollars in assets, with corresponding liabilities and equity that could be considered alternatives to securitization, securitization was still relatively slow to follow. the pace of this sector. Securitizations in the US insurance industry were first used in 1988. They involved the sale of rights to the emerging profits of blocks of life insurance and annuity policies (Millette, 2002) . Nevertheless, they grew rapidly due to huge loss events such as Hurricane Andrew in 2002. 1992, the global Trade Center terrorist attacks in 2001, and Hurricanes Katrina, Rita, and Wilma in 2005. (Cummins, 2009 ) Suffering from these disasters, traditional methods, such as reinsurance, reducing exposure and controlling the most volatile part of the contractual obligation, are not enough to transfer the risk (Tynes, 2000). Clearly, the assets of reinsurers have been seriously weakened. The common methods of recovering paper revenue capabilities ......nes of business, and the fact that shareholders of traditional insurance companies take risks and expect gains on the capital of their companies which correspond to the level of risk exposures they have assumed, securitization, the alternative risk management solution, should be more effective when risk managers are willing to hedge risks at a lower cost than using securitization methods. traditional insurance. Therefore, providing adequate returns to risk bearers could be a better way to contribute to the development of securitization, which will replace traditional insurance methods. In fact, securitization actually provides efficient risk allocation through both reduced costs and increased capacity. Furthermore, for securitization to continue to attract investors, the potential to provide the necessary capacity for unhedged risk exposures should be gradually exploited...