Research On Insurance Model Under The Mechanism Of Catastrophe Risk Diversification

Since 1970s, the occurrence of major natural disasters and man-made disasters in the world is increasing significantly. China is one of the few countries which suffer serious loss. How to deal with disaster risk has become a major academic issue of common concern. As an effective mechanism for risk diversification, major disaster insurance is one of the important ways in disaster risk management. However, with the scale of major disasters growing, insurance market capacity is insufficient to cover the large loss of major disaster. Presently in China, post-disaster financing mechanisms mainly rely on the support of national financial as well as international assistance, which are similar to the most developing countries. Risks of Families and Government did not achieve effective transfer. Original budget for economic development has to turn for emergency relief.From maintenance of social stability caused by disaster risk reduction on the country's economic losses and promote the people's livelihood point of view, This article related to a major disaster risk theory and the risk of major disasters to the global development for the focus to study risk dispersion mechanisms and the operation of the insurance market. The paper selects private market and public intervention in risk spreading mechanism for the comparative study. After Use game theory to analyse the existing pattern of a major disaster under the conduct of the insurance market, establishment of a mechanism to spread the risks in a reasonable proportion of public and private assessments is possible. With distribution of disaster risk model and the nature of heavy-tailed, the author researches factors affecting the economics from the micro-and macro-economic conditions of individual behavior at two levels. Based on the traditional risk model and the background of economic operations, the paper introduces a double-delay model under the economic cycle.From the insurance supervision, fair efficiency and the financial operations, with the study of disaster insurance system for the supply, foreign insurance business model is worth our using for reference. To coordinate the relationship between all interests parties, this paper try to establish an effective insurance operating system mode compliance with the Government, insurance industry and policyholders in tripartite linkage to spread the risks of disasters.