Research On Environmental Liability Insurance For Sudden Environmental Pollution Incidents Risk

Since the industrial revolution, the global environment has been deteriorating due to human economic development. Sudden environmental pollution accidents have been increased and caused huge economic losses. Sudden environmental pollution incidents risk originates from each stage of enterprise production and management. The cost for enterprise is huge to control some or all of these risks. Therefore, enterprises need an environment of risk management instrument, in order to reduce the investment in environmental protection. Environmental pollution liability insurance is an effective way to manage sudden environmental pollution risk. By purchasing environmental pollution liability insurance, enterprises can save environmental protection costs within reasonable range. Countries also can reduce inputs after sudden environmental pollution incidents happen.With the increasing of sudden environmental pollution incidents in China, and the more attention paying to environmental protection, environmental pollution liability insurance becomes an important way for government environment protection to compensating. From the view of insurance industry development, environmental pollution liability insurance has a huge market, and is benifit to the development of China insurance industry.This dissertation analyzes the feasibility of insurance company launching environmental pollution liability insurance in China, which includes the necessity, possibility and insurability these three aspects. Firstly, China implements environmental pollution liability insurance is necessary, for the sudden environmental pollution incidents lost can not be compensated by enterprises and government; Secondly environmental liability insurance implementation is possible in China from the aspects of macro-environment and law as well as insurance and environmental damage assessment; Finally, sudden environmental pollution risk is an insurable risk and this dissertation analyzes environmental pollution liability insurance system from market view point, including market demand, market supply and market equilibrium these three aspects. Meanwhile, this dissertation analyzes three games behavior of the environmental pollution liability insurance market, and proposes the three game equilibrium of enterprises and government as well as insurance companies, and all these market factors influence the determination of environmental pollution liability insurance premiums.The dissertation analyzes the meaning of environmental risk assessment according to the research of environmental pollution liability insurance and environmental risk assessment. Environmental risk assessment is divided into sudden environmental pollution incidents probability assessment and consequences assessment, and confirms the environmental pollution liability insurance premiums and compensation. And the dissertation puts forward the theoretical framework of confirming environmental pollution liability insurance premiums and compensation based on environmental risk assessment.The dissertation establishes the sudden environmental pollution incidents probability risk assessment index system according to the characteristics of sudden environmental pollution incidents and other related studies, which is divided into risk source characteristics, environmental factors, management, direct economic losses and ecological damage five theme-layer and 26 final indexes. And the weight of each index is determined by using AHP method. Based on the evaluation index system this dissertation establishes determination model of environmental pollution liability insurance premiums by using IRR model and fuzzy pricing of insurance products.The dissertation establishes sudden environmental pollution incidents effects evaluation index system, which is divided into economic loss assessment and social influence assessment. In this paper , effects are evaluated by economic losses, which includes direct economic loss assessment and indirect economic loss assessment as well as ecological economic loss assessment, and the effects of sudden environmental pollution incidents effects are computed by the three aspects, and then the dissertation determines the environmental pollution liability insurance compensation according to the calculation results.Takes Dalian China oil pipeline explosion and fire incidents in July 16, 2010 for example, which happened in Dalian International Logistics Co Ltd. The dissertation uses the above methods to determine environmental pollution liability insurance premiums and compensation. Firstly, makes assessment on sudden environmental pollution incidents probability risk of PetroChina Dalian International Logistics Co Ltd, and then determines environmental pollution liability insurance premiums. In the following, evaluates the losses of the incidents in order to determine the environmental pollution liability insurance compensation.The dissertation proposes the environmental pollution liability insurance constructing modes and tactics, and proposes new model for insurance company to develop environmental pollution liability insurance by using system dynamics analysis method. Based on the problems of current environmental pollution liability insurance in China, this paper puts forward the corresponding strategies from technical, legal and insurance way as well as premiums determination and benefits aspects, and so on. These strategies can provide guidance for insurance companies to develop the insurance business.The dissertation puts forward technical and strategic guidance for insurance companies to develop environmental pollution liability insurance from sudden environmental pollution incident risk assessment, and then deeply discusses the important and difficult issues of environmental pollution liability insurance, that is the determination of premiums and compensation, and the specific methods are also offered, which establishes the theoretical foundation and strategic support for China insurance industry to develop and improve environmental pollution liability insurance.