A Brief Talk On How To Establish An Insurance System Of Floods In China

Losses that bring to national and demotic wealth caused by the flood are very huge. The loss increases as the economy grows. To relieve the government's burden, different compensation systems are established all over the world. Our country's relief system is very time-honored. Compared with flood insurance mechanism in England and America, however, our country's compensation system has its own disadvantages. Flood insurance, which exist in the form of insurance contract, could compensate the loss economically. Establishing the flood insurance is a huge social project, which government and other relevant sectors are supposed to participate in. The establishment of flood insurance is dependent upon the analysis and evaluation of disaster risk, the determination of risk area, scientific measurement of loss and non-project management system of reducing the loss. Currently, comprehensive scientific development and application of advanced technology in the risk management improve the accuracy of flood risk evaluation and measurement and lay the solid technological base for the establishment of flood insurance. To establish the flood insurance and reduce the loss to the largest extent is very crucial to the our country's rapid economics growth. This paper expound on the current situation of disaster loss insurance. Then, combined with the characteristics of flood risk management, from the perspective of switching the mechanism, this paper probe into how to establish a flood insurance mechanism participated by the government and operated by the insurance company, in which the loss is shared among government, insurance company and victims.