Study On Establishing Catastrophe Insurance System In China

Catastrophic risk is defined as the phenomenas and events which caused by the natural disaster or the human factor, once occurred it may cause the giant personnel casualty, the property damage, and the huge frustrating effect to national and local social life, the economic system, the ecological environment.Since the 1970s, catastrophic risk has occurred frequently in global scale. It has brought the heavy losses to many countries'economy, the society and the insurance business, threaten seriously the stable growth of state economy,the according development of society and the survival of insurance business. China often suffers from the catastrophic risks,such as the South Region Snowstrom and Wenchuan Earthquake in 2008, the Southwest Drought and the YuShu earthquake in the beginning of 2010, big rainstorm in our country multi-provincial area in this year summer.The several disasters reflect highlights the urgency of speed up the catastrophe insurance system in China.First,this article has suggestions to our country catastrophe insurance system's basic integrant part:establishing the sole catastrophe insurance system of earthquake risk;implementing the compulsory insurance; establishing the catastrophe insurance fund; setting up monopolizes the organization management; the insurance coverage of the urban, intelligence resident housing building's loss; implementing differential rate; implementing legal payment quota; establishing reasonably exempts compensation.Next, this article has suggestions to building a mechanism to spread the catastrophe risks:Building a multi-level mechanism to spread the catastrophe risks, applicants,insurance companies, reinsurance companies,the Government and capital market spread the risks.Finally, this article has suggestions to building a support systems for the catastrophe insurance system:Building a legal system for the catastrophe insurance; Consummating the disaster prevention and reduction mechanism;Implementing the tax preference; Strengthening the supervision of the catastrophe insurance; Strengthening the study of cat modeling.