The Research On Problem Of Flood Insurance Pricing Which Based On The DFA

Flood insurance belongs to catastrophe insurance, due to its special nature of small probability but large losses and the uneven distribution of loss in the region affected, In addition to the need of large-related data, such as the type of building in flood risk areas, terrain height, use of buildings, Indoor property type and value, etc. This leads to accurate pricing the flood insurance has been very difficult. In today's world, it have not special pricing model for its pricing yet, author makes dynamic financial analysis models (DFA) Application to China's flood insurance pricing, With the view to achieve better pricing effects.Paper collected the 56 year of flood loss data since 1949, on the basis of fitting distribution of flood losses and frequency, forecasting the Economic losses of China's Flood, while applied DFA model to the flood insurance pricing practice, analysis and discussion the issues of China's flood insurance pricing, so to find a suitable methods for China's flood insurance pricing, make reference for developing long-term planning and systems for the establishment of China's flood insurance programs.The Purpose of my thesis is to investigate the problem of China's flood insurance pricing. for this purpose, This paper doing research from three aspects based on this theme. First, make distribution fitting On China's flood losses, respectively doing distribution fitting on the flood losses with lognormal and Pareto distribution, frequency of floods with Poisson and the negative binomial distribution. Secondly, paper introduce the dynamic financial analysis models (DFA), on the basis of giving note on principle of pricing for flood insurance, establishing the Flood Insurance Pricing Model which based on DFA method and introduce its structure and composition module, giving an example of flood insurance Pricing. Finally, according to the collected data, by choosing a certain area as an example, apply Dynamic Financial Analysis Model (DFA) directly to China's flood insurance pricing practice. Through Empirical Analysis to solve the problem of China's flood insurance pricing, provide a reference to China's flood insurance program implementation.