Research On Hazard Loss Compensation System Under The Perspective Of Risk Society

Hazard loss compensation is an old topic. The plutonomists, from the perspective of "civilization and benefit", have researched the responsibilities of the government on hazard loss, whole the market economists innovate the hazard loss financing mechanism from the perspective of risk loss transfer loss and diversification. However, the modern society is characterized by "risk society", with hazard risks accompanying with the industrialization, globalization and technical reform have been more and more frequently, the economic, social and population losses brought by the hazard risk are also being "magnified" continuously. Risk society does not only change the morphology of risks faced by people, but also changes the traditional rule on which the hazard loss compensation mechanism relies. This paper strives to discuss the new selection for the hazard loss compensation in the game relation of government and market around these changes of hazard risk, so as to construct a new system of hazard loss compensation system.Risk society changes the nature and state of hazard risks faced by people, making the hazard risks characterized by mutation, dispersivity, fussiness and massive loss, the catastrophe risks of small probability have been occurring more and more, the natural hazard and industrial hazard, environmental hazard and social hazard like terrorist attack occur alternately, with a fuzzier and fuzzier risk, hazards are also spreading regionally and internationally. These highlighting new characteristics make the traditional government functions weak and also invalid the traditional risk transfer and sharing mechanism. We re-examine the risk nature and define hazard as a process of phenomenon constituting serious deprival to a great portion of population (public bodies) by force majeure. When hazard cause the "public bodies" to face massive losses jointly, it is possible to use a completely private market mechanism to share the risk loss, therefore, we propose to establish a hazard loss compensation model integrating public department (P), market (M) and the public (P), which is also a hazard loss financing mode to greatly expand the insurability of hazard risk.The basis to put forward this idea is a public risk, which does not only influence the private, but also influences the national security and government credibility. Hazard is serious deprival of "public bodies", such deprival is not only limited to resources, but also the resource allocation relation (mainly manifested in exchange entitlement relation). Therefore, the nature of hazard is to destroy the resource and resource allocation mechanism. Then when deprival occurs, it is not only required to repair the resources of the public bodies borne by the hazard, but also reallocate the resource allocation relation of the public bodies, and this is the task of hazard loss compensation that we will research. It is a broad concept, not only to measure the loss of and make compensation for the public bodies destroyed, level the lowland after the original resources are deprived, but more importantly, to implement a series of economic, political, environmental and humanistic measures, restore the market subject function of the government and social organization, reconstruct the economic operation mechanism and restructure the resource allocation mechanism. Hazard loss compensation is not only to realize the objective of efficiency and fairness, but also the objective of system compensation, i.e. the compensation for the loss of resource environment system.Considered from the aspect of national security, change trend of hazard risk and the public risk nature of the hazard itself, it has been an important thing that must be solved and should not delayed in the economy and society of a nation to establish a new hazard risk management system. We propose to re-recognize risk insurability and the traditional laws of the hazard loss compensation like law of large numbers, expand the insurable risks and the law of large numbers with the reform of modern technology and modern thinking to realize the structural setting of hazard loss compensation. The government will not only play the role of manager, but also the role of "final insurer" of hazard risk and participates in the insurance, reinsurance and the overall capital market with the expanded law of market to form a macro and open insurance public body.In this integrated public body, from the aspect of the public, public is the demander of private products, but also the undertaker of private risk, the connection between the government and public can be linked by the public participation, while the connection between public and market is linked by the risk contract; from the aspect of market, market is a collective mechanism of public risk, and another public body gathered with insurance contract as the link; from the aspect of government, government is another gathering mechanism of the public, which is a public body established with law and morality (social deed). The government can and should provide public products for the public when dealing with the non-private risks like hazard risk, which is the demand of public selection and also the source of formation of government system. The government can interfere with the market in the form of insurance, reinsurance, hazard risk fund and catastrophe bonds to become the market subject or loss financing.A problem here is that the government plays double roles, i.e. the government is not only the establisher of system, supervisor of market, a "judge", but also the provider of some insurance products, insured products, bond supplier, market subject and "player". The government also plays the double roles of judge and player simultaneously with an unclear identity and responsibilities and will often not perform the due responsibilities, while interfere with those that should not be interfered with too much. However, this is the inevitable contradiction occurring to the government as two subjects, but on the contrary, it is the contradiction by the ambiguous of two subject roles of the government.The possible innovations and shortcomings in this paper1. In terms of research on disaster loss compensation, the general approach is to study the operation of loss financing mechanism in the market, and the science of public management also focuses on the research on the management and response from the perspective of government management. In this paper, we investigated the change of disasters with times from the perspective of risk society, and considered building the government-market-integrated disaster loss compensation methods;2. In insurance, the research on disaster loss compensation is focused on the natural disasters. In the paper, we mainly described the ambiguity of natural disasters and natural disasters, and proposed not to strictly distinguish the disasters in naturality and sociality, but defined the disaster loss compensation as a loss compensation for various modern disaster hazards including industrial and environmental disasters.3. The disaster loss compensation research in the conventional sense mainly focuses on the compensation for the direct economic loss caused by disasters. In this paper, we defined the disaster loss compensation as a compensation for resources and resources allocation mechanism, hoping to establish a systematic loss compensation model stressing both efficiency and justice, to extend the innovation of disaster loss compensation from the level of economic loss to the level of systematic "resilience".However, due to the limitations in my academic ability, knowledge and experience, the integrated disaster loss compensation model above was only defined and analyzed qualitatively from the framework, but not demonstrated fully and analyzed with a quantitative method. It needs a clear solution on how to make P=M-P model realize systematic compensation in actual operation, and especially realize the quantitative design of programs when it is applied in the frequent disasters like earthquake, typhoon, floor and drought in China. These problems need to be further researched. In my future work and study, I will keep correcting and perfecting some ideas I proposed in this paper.