The Research On Reinsurance System In The System Of Earthquake Risk Management

China is one of the countries that suffers the most in Earthquakes in the world.The relatively lagged Earthquake risk management system is not matched with China's fast-growing economy.Highly rely on Government's bailout and expenditure have negative impact to the Financial budget and economic development plan.All of this push public affairs managers have to consider a set of pre-disaster financing and risk transfer schemes.Insurance is obviously the best practice.However,the earthquake risk does not conform to the ideal condition of the traditional insurable risk.The Earthquake insurance has positive externality,and is considered of quasi-public property nature.It's quite difficult to form an effective supply purely depend on the market,and could lead to market failure.Since earthquake reinsurance could help the original insurers to improve the financial stability and achieve cross region risk dispersion,it could breach the limit of traditional insurable risk theory,expand underwritten capacity and solve the market failure issue,and become the key of Earthquake insurance system.It is necessary and feasible to use reinsurance regime to build an Earthquake insurance system.The history of Earthquake insurance in China was full of twists and turns.In recent years,the government has paid more attention to catastrophe risk management and arranged distinct levels of attempt and innovation activities.However,the complete Earthquake risk management system has not yet been established.Under such background,for the development of economic and social,it is very important to design a reinsurance system to promote the development of Earthquake risk management in China.The content of this dissertation is about the research on theory and practice of Earthquake risk management and Earthquake reinsurance.More concretely,it includes the analysis of the influence factors of Earthquake risk,tools;the market failure of Earthquake insurance market and the solutions;the value,necessarily and feasibility of Earthquake reinsurance;define the position and function of Earthquake reinsurance system in China;Find out the common points,advantages and disadvantages,ofseveral international practices;using game model to analyze the applicability of coinsurance model in Earthquake reinsurance;analyze the performance and survival rate of coinsurance via simulation,find out a paradigm of system design;research on nontraditional reinsurance embrace government preferential policies and capital market;finally the dissertation will give the proposals of the framework and detailed policy of Earthquake reinsurance in China.This dissertation integrate theory with practice,canonical parse and empirical analysis,comparative analysis and comprehensive analysis.Through deduction,induction,and case study,clearly and concisely elaborate the research subject.The conclusion of this dissertation are as follows.Legislation for Earthquake insurance and reinsurance is recommended.Earthquake reinsurance should be dominated by market,by the coinsurance.Centralize risk within coinsurance to maximization of risk diversification in the territory,and arrange further reinsurance.A hierarchical reinsurance should be established,and a national-wide catastrophe fund will be set by government,to cover various natural catastrophe risk including Earthquake,floods and typhoons.Expand underwriting capacity via non-traditional reinsurance,e.g.capital market.Preferential policies such as tax incentives are necessary for coinsurance and catastrophe fund.Block chain and smart contract can be used for automatic ceding and claims amount members within coinsurance.The innovation of this dissertation lies in two aspects.Firstly,this paper constructs a complete set of Earthquake reinsurance system,and demonstrates the necessity and feasibility of using the reinsurance regime to promote Earthquake insurance system.Secondly,the paper analyzes the applicability of coinsurance in Earthquake reinsurance via game model,and demonstrate the feasibility of using simulation to observe the coinsurance performance.The research paradigm is given.Previous research more focus on original insurance and many of them are based on literature summary.