  We consider the problem of numerical approximation for forward-backward
stochastic differential equations with drivers of quadratic growth (qgFBSDE).
To illustrate the significance of qgFBSDE, we discuss a problem of cross
hedging of an insurance related financial derivative using correlated assets.
For the convergence of numerical approximation schemes for such systems of
stochastic equations, path regularity of the solution processes is
instrumental. We present a method based on the truncation of the driver, and
explicitly exhibit error estimates as functions of the truncation height. We
discuss a reduction method to FBSDE with globally Lipschitz continuous drivers,
by using the Cole-Hopf exponential transformation. We finally illustrate our
numerical approximation methods by giving simulations for prices and optimal
hedges of simple insurance derivatives.
