This paper is a response to the Casualty Actuarial Society’s request for proposals on "Contingent Capital." In light of the recent financial crisis, contingent capital, a type of hybrid security, is seen as an innovative way of recapitalization given the occurrence of a specified event, such as the capital adequacy ratio falling below the threshold. Although it has gained prominence among regulators, there are some doubts from market participants. The effectiveness of this automatic bail-in hybrid security is still too early to tell, given the limited market experience and unclearness of the impact on the share price when the conversion is triggered. The goal of this research is to explore the key features of contingent capital, its market, the appropriate pricing and valuation tools, and its application in insurance industry. It is hoped that the research will increase our understanding of contingent capital and facilitate the assessment of its value and risk.