Research On Pricing Of Storm Surge Disasters Reinsurance In China

China’s coastal areas is the storm surge disaster-prone areas, and a storm surgedisaster caused economic losses amounting to several hundred million dollars, coastalresidents and firms suffered serious losses. The role of property insurance is to spreadthe risks and to compensate for property damage caused by the risk event, so it is verynecessary to the creation of storm surge disaster insurance. However, if there is noreinsurance for the reinsurance of the original insurance policy, the risk can not beeffectively dispersed. A reasonable storm surge disaster reinsurance pricing is thepremise of storm surge disaster reinsurance effective risk diversification. Reasonablestorm surge disaster reinsurance pricing is the premise of storm surge disasterreinsurance effective risk diversification, which makes this article on the storm surgedisaster reinsurance pricing method comparison studies have practical significance.This paper uses a random process, the utility function method, the fuzzycomprehensive analysis, combined with the analytic hierarchy process and grayrelational combination of weights to determine the storm surge disaster reinsurancepricing investigate. Firstly, it defines the meaning and role of the reinsurance, anddescribes the type of reinsurance for different classification. And it analyzes thecharacteristics of storm surge disasters and describes the storm surge disasterreinsurance pricing theory. Some relative method and model are introduced as well.Secondly, the paper analyzes the pricing constraints and influencing factors of stormsurge disasters Reinsurance in China. The Storm surge disasters reinsuranceconstraints of the three main body including original insurer, reinsurance and thegovernments are analyzed; and the proportion of reinsurance and non-proportionalreinsurance impact on storm surge disaster reinsurance pricing factors are analyzed.And then, according to the advantages and disadvantages and applicability analysis of storm surge disaster reinsurance pricing and pricing techniques, it discusses under thepremise of each reinsurance pricing method more suitable for the storm surge disasterreinsurance. For the applicability of the premise, it uses pricing based on the lossdistribution and based on regionalized catastrophe model of storm surge disasterreinsurance pricing. Based on the characteristics of storm surge disaster losses and theloss of storm surge disaster distribution, it uses the methods of stochastic processesand the utility function proportional reinsurance optimal retention scale factor andnon-proportional reinsurance optimal retention determined. And then the purereinsurance premium is calculated. Pricing based on the regionalization of catastrophemodel of storm surge disaster reinsurance pricing. According to the reasons for theregionalization catastrophe model analysis, this paper proposes to construction ofregionalization catastrophe model based on storm surge disaster vulnerability zoningclassification. It selects the two types of the vulnerability indicators of natural andhuman society vulnerability, and uses fuzzy comprehensive analysis to evaluate thevulnerability, then combined with the results of cluster analysis, zoning classificationof storm surge disaster vulnerability. And combined with the analytic hierarchyprocess and gray relational method, it determines the vulnerability index weights.Then it analyzes how to use the model to pricing the storm surge disaster reinsurance.Finally, it draws the conclusions.Innovation Discussion on this thesis in the following areas:1. In this paper, the research perspective is on innovation. Most studies basedon catastrophe reinsurance in the past, there was no separate reinsurance pricingmethod a comparative study of the characteristics of storm surge disaster in China.2. Storm surge disaster reinsurance traditional pricing method based on the lossdistribution of proportional reinsurance on the probability of bankruptcy of theoriginal insurance company to determine the optimal scale factor; fornon-proportional reinsurance, the use of quadratic utility function in the utilitymaximization of reinsurance companies under the conditions that meet the optimalretention of the original insurance company to determine the loss distribution of thelognormal distribution. 3. This paper introduces the storm surge hazard vulnerability as the zoningclassification of the vulnerability module of the catastrophe model of regional riskreinsurance pricing, which puts forward new ideas on the improvement of thecatastrophe model. Construction of storm surge disaster vulnerability index system,including both in the natural aspects of vulnerability indicators and in the humanitiesand social aspects of vulnerability indicators, makes the indicator system morecomprehensive and better response to the storm surge disaster vulnerability.