The Study On Catastrophe Insurance Mechanism Of Our Country Which Based On The Game Theory

The catastrophe-risk is a sudden and unpredicted disaster that can cause huge economic losses and casualties, which includes natural disasters such as hurricane, earthquake, typhoon etc. and manmade hazard such as terrorism and so on. In 2005, the insurance loss was 80 billion dollars in catastrophe losses of the world , which created a new record in history, according to the statistics of Swiss re. While in China, the losses on property that damaged by catastrophe-risks such as earthquake, typhoon and flood may be far more than 100 billion yuan. Therefore, the catastrophe risk has already become the focus of the world, not only depending on the whole world's losses, but the catastrophe losses in China. In the face of the wild catastrophe risk, a lot of countries have set up national catastrophe distribution and compensation mechanisms, and gradually come to maturity. Compared with it, at the present stage in China the compensation mechanism for the catastrophe-loss mainly depends on the government's financial compensation and self- digestion of the masses suffering from disaster, while the commercial insurance companies which are especially good at risk managing have not played a proper role. Our nation is still lack of a reasonable, scientific and effective catastrophe-risk management mechanism. Under this background, how to set up a national catastrophe distribution and compensation mechanism, taking account of interests of the masses suffering from disaster, commercial insurance company and government, is the priority research of this article.In this article, the author, making use of the game theory, attempts to analyze the current situation and the root of China's national catastrophe distribution and compensation mechanism, from the angle of the three interests parts'behaviors, and comes to the conclusion that China needs to build up a catastrophe-risk management mechanism which suits our country's conditions badly. Basing on the analysis of American National Flood Insurance Plan and Taiwan Residential Earthquake Insurance Pool, the author proposes a mandatory integration national insurance program as the losses compensation mechanism, according to the characteristic of the risk of catastrophe and economic development of our country, This national insurance program can realize the distribution of catastrophe-risk in a maximum magnitude, and the multiple loss compensation.The article is divided into four parts. The first part analyzes the present catastrophe risk management mechanism, according to catastrophe risk's general situation in China, from the angle of the three interest parts'behaviors, which includes masses suffering from disaster, commercial insurance company and government, in order to state the difficulties of present catastrophe risk management. After analyzing the reasons for the difficulties, draws the necessity of managing this risk. The second part concludes that mandatory principle can assure the national catastrophe to carry on smoothly, Basing on the analysis of American National Flood Insurance Plan by means of the game theory. While after the analysis of Taiwan Residential Earthquake Insurance Pool, it is concluded that insurance pool can combine the market mechanism with the government and realize the win-win situation. The third part offers some suggestion on how to set up China's catastrophe management mechanism. The fourth part mainly expounds the innovation and the insufficiency of the article.