A Study On The Forest Insurance Business Pattern

In the forest insurance market, the degree of destroy is hard to make sure and the information between the insured and the insurer is asymmetry. So it's important to make sure destroy probability and premium rate and to know how to avoid adverse selection. Besides, due to the high risk, high loss rate and low insurance rate of forest insurance itself, insurance companies'stability is also challenged. So reinsurance is unignorable. In part I, the questions to be researched are put forward and the schemes of research are introduced based on the comprehensive review of the relevant documents.In part II, the relevant knowledge used in this paper is introduced.In part III,the destroy rate of the forest is estimated and tested using the theory of estimation and hypothesis test. The forest management risk is analyzed and a method of valuating forest property and calculating insurance premiums is introduced. It provide theory basis for the insurer.In part IV, both deductible and coinsurance rate are introduced. Risk is classified taking into account both the insured and the forest. A signal screening and incentive model is constructed. A pricing and coinsuring system in the need of the market of forest insurance is educed.In part V, under the separating equilibrium background, the insured are differentiated effectively in the ground of signaling game, the coinsurance rate's differential form and the relationship between premium rate and coinsurance rate are introduced.In order to work stably, the insurers can transfer some risk to reinsurance companies through reinsurance. In partâ…¥, the design of optimal reinsurance policy is researched. The optimal deductible in full insurance and the optimal partial protection to ruin are educed.At the end of this paper, we make a summary and a concise announcement of the deficiency in it and draw out the questions worthy to be studied in later research.