Applicational Research Of Catastrophe Bond On Earthquake Risk Dispersion Of China

There are many catastrophes happened in China which cause great losses every year. So our government has to pay a lot to relieve the people in disaster, that cumber the development of economy; at the same time, the commercial insurance companies which offer catastrophe insurance suffer a lot, so they are unwilling to offer such insurance anymore.Insurance risk securitization(IRS) has been an important innovation in international riskmanagement field currently. Which has also been an substitution and complementarity to traditional methods. Foreign experiences illustrate that IRS can resolve catastrophic risks effectively in insurance industry. Catastrophe bond (CAT Bond), one of IRS, is a very important innovation in the international field of risk management in twenty years. Through the CAT Bond, risk is transferred from insurance market to capital market. Risk can break the limit of the insurance market and be scattered in the wider capital market.Aiming the CAT Bond, this paper analyses the catastrophe securitization comprehensively, basing on the background of earthquake risk. And this part analyses the mode of CAT Bond pricing and the feasibility, unilizing the technology of finance. The main contents are as follows:Firstly, this paper sets forth the occurring background of CAT Bond, introduces some concepts, occurring background and developing status etc, and then, this part introduces the designing and operation of CAT Bond in foreign countries. Based on the analysis of securitization products' designing and traits, the author studied on insurance actuary pricing of securitization products, meanwhile, the real case of CAT Bond in the USA.Secendly, according to the reality of China, this paper analyzes the possibility and necessity on CAT Bond in China. This part firstly depicts...