| The industry of exploration & design in China is developing very fast. With the exploration & design firms and engineers showing more and more importance, they have more chances of assuming legal duties. A system of Professional Liability Insurance (PLI) is a useful means of dispersing the legal duties they are to undertake. So it is a necessity to improve and better the system of PLI for exploration & design and cultivate its market in China. Meanwhile the operation of the insurance system will promote the developments of exploration & design industry, engineering insurance market and PLI market.Based on the study of the development status of PLI for exploration and design in china and overseas, this paper brings forward the general theory, characteristics and qualities of the PLI for exploration and design following the comprehensive analysis of the features of the exploration and design industry and PLI. Then a brief analysis is carried out which aims at the problems existing in the operation of PLI for exploration and design in China and the necessity of putting the insurance in practice. After that, the paper puts the emphasis on the studies of the premium of PLI for exploration and design in China and cultivating the market of the insurance.In virtue of the expected utility function, the paper further probes into the necessary conditions for a PLI for export &design contract, analyses the policy selection model whose core is the substitution relationship of the deductible and the premium and shows the method of determining the integrative premium of PLI for export & design. Then the design of the premium optimization is given. By analyzing the market operation of PLI for export &design, the paper also conceives a general plan of cultivating the market. Finally, combining the knowledge of the present status, the paper, from different angles, gives a comprehensive exploration of the management countermeasures for putting this insurance into operation in China. |
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