A Study On Supply Of Earthquake Insurance In China

In recent years, there are many earthquakes in China and these earthquakes brought unprecedented huge losses. Also it sparked the necessary of existence and effect of the earthquake insurance. The glaobal average proportion of commercial insurance compensation in all the social loss compensation is about 40%. In earthquake-prone countries, earthquake insurance is endowed with important function. But in China, there is still not separate earthquake insurance sevice. It is in sharp contrast to the stronge earthquake insurance demand. What caused it? And How to develope the earthquake insurance service in China? To solve these problems, based on economic theory, this paper studies the issues of China’s earthquake insurance serving earthquake insurance supply as theme. This paper includes 7 parts.The first chapter introduces the background of the earthquake insurance. By listing systematically the literatures of the earthquake insurance, this paper gets that the stuties on the supply of earthquake insurance are plenty based on the public theory, but still not systematical. Combined with these studies and China’s situation, thie chapter introduces the purport, the theory, the method and so on.The second chapter is the theoretical analysis section. Through the analysis of the earthquake disaster connotation, characteristics and effects, and based the insurance theory and risk management theory, this section explores the insurability issues of the earthquake risks, define the earthquake insurance, differentiate the earthquake insurance and ordinary incurance, scratch the factors that affect the earthquake insurance and the mechanism of action.Chapter 3 describes the history and situation of the earthquake insurance. By combining the history and current situation of China earthquake insurance supply, this part does qualitative analysis to the current situation, explores the gap between demand and supply in quantity and quality, as well as schraps the reasons that caused the gap. It shows that the supply earthquake insurance is conducted and managed by government in spite of the long history. Althouth the demand is stronge, the relative supply of earthquake insurance is not enough whatever the quantity or the quality. The reasons that cuased the current situation mainly includes the undersupply because of the solvency constraints, the deficiency of suppliers,as well as the structural imbalance caused by the inaccurate of insurance coverage. In order to promote the earthquake insurance supply, we should start from supply quantity, supply mode, as well as suuply structure.Chapter 4 focuses on the total measure of earthquake insurance and the expansion of supply. Firstly, through data compilation and statistical analysis, this part summarized and assessed the insurance capacity of the property insurance market and re-insurance markets in China. Secondly, based on the incurance capacity of China’s property insurance and reinsurance, this part finds the gap beween demand and supply by mathematical simulation. Thidly, this paper analyzes the channel expasion and mode development of the supply through financial maket. Fourthly, through the analysis of risk financing environment, this part lists the conditions and problems in the risk financing and discusses the feasibility of the optional modes under China’s circumstance. Lastly, this part provides the feasible and sustainable risk financing mode that fits China’s statement.Chapter 5 studies the issues of the earthquake insurance supply modes. Through analyzing the potential suppliers of earthquake insurance, the part dissects the tpical suppliers’ scrupulosity and factors that affects their behavior. By constructing a game model, this part studies the cooperation game process between the government and insurance companies, and discovors the laws of earthquake risk management system, clear the roles of government and insurance companies, as well as take feasible advices for China’s earthquake suppliers.Chapter 6 studies on the supply structure. Based on the results of chapter 3 and 5, this part designed 3 kinds of earthquake insurance service, includes residential earthquake insurance, public utility earthquake insurance, as well as commercial earthquake insurance.Chapter 7 takes conclusions of this thesis, and provides the advices on the basis of previous research that fit China’s situation.