| China is one of the worst natural disasters countries in the world. China currently executes the catastrophe risk management pattern by national finance supporting and central government leading which the government only arranges the relief for the loss and the commercial insurance don't play an important role in the catastrophe risk management. For example, insurance companies pay 2% of total losses in south storm in 2008 of our country and pay 1.5% of total losses in Sichuan earthquake. But the catastrophe insurance payment rate is 40% of the world average level and developed countries even reach 60%. This shows that the insurance industry don't play a role in the catastrophe risk compensation yet. Therefore, we should establish our complete catastrophe insurance system and ascension status of insurance in national disaster relief system by referring to the experiences of developed countries. It has important practical significance to enhancing the ability to cope with catastrophe loss and constructing the harmonious society.This paper elaborates the catastrophe risk and catastrophe insurance theory. Compared to America, Japan and Norway, analyze current situation of catastrophe insurance system of our country. And on the basis of the successful experience of the foreign countries and the practice of our country, the article figures out the counter-measures in order to improve catastrophe insurance system of our country. This paper contains three chapters:This paper elaborates the catastrophe risk and catastrophe insurance theory. Compared to America, Japan and Norway, analyze current situation of catastrophe insurance system of our country. And on the basis of the successful experience of the foreign countries and the practice of our country, the article figures out the counter-measures in order to improve catastrophe insurance system of our country. This paper contains three chapters:The chapter one is the overview of catastrophe risk.The first segment is the concept, features, classification of catastrophe risk. First, the paper defines the catastrophe risk as the total loss beyond 85 million dollars based on Swiss Re. Second, the paper analyze the features of catastrophe risk which include low frequency, affected a wide range, huge losses and difficulty to predict. Finally, it introduces two kinds of classification of catastrophe risk: first, catastrophe can be classified into natural disaster and man-made disaster based on the cause of the catastrophe; second, it can be classified into normal catastrophe and abnormal catastrophe based on its frequency.The second segment is the management mode and its evolution of catastrophe risk. First, it introduces the management method of catastrophe, including risk reduction, risk transformation and risk self-retention. Second, the paper expounds the evolution of catastrophe risk management. It points that countries take active method against risk instead of passive method with the development of the economy. Then the paper elaborates these management methods including financial support, tax adjustment, international aid, catastrophe insurance, catastrophe reinsurance, catastrophe insurance, catastrophe fund.The third segment analyzes the necessity of the development of catastrophe insurance in our country. It points out the theoretical significance and practical significance of the development of catastrophe insurance in our country: Firstly, the catastrophe insurance is able to play better compensation insurance losses function, Secondly, the development of catastrophe insurance can strengthen people's consciousness of catastrophe risk, promote the security before disaster, reduce the amplitude of the preventive measures, encourage social and insurant reduce losses. Thirdly, the development of catastrophe insurance can be for social stability. Fourthly, the development of catastrophe insurance is favorable for the government's public affairs management and financial pressure, and accelerating transform the functions of our government in catastrophe accident which can make human, material and financial resources to fair used effectively. Fifthly, through the catastrophe insurance, it can promote the development and perfection of the reinsurance market and capital market, making the financial system and stable development.The second chapter is catastrophe insurance system of developed countries and its reference for our country. The first segment introduces the general situation of catastrophe insurance system in America. It takes CEA and National Flood Insurance Program as example. Then it appraises the catastrophe insurance system in America, and summarizes its features, advantages and limitations. The features and advantages of earthquake insurance in the USA include the following aspects: First, California earthquake insurance belongs to the state of California government insurance program, but it doesn't have financial support from the state or federal government,. It just enjoy preferential policies in tax. Second, California legislation requires the earthquake insurance premium which be provided by CEA is based on the expected loss rate, and implement the actuarial premium regional division. Third, California earthquake insurance aims at providing the most basic earthquake risk safeguard for the resident, therefore the design has a policy of free. Fourth, the establishment of CEA maximizes the market mechanism.The features and advantages of American flood insurance include the following aspects: First, Insurance company acts as agent, it does not bear claim risk. Second, the flood insurance has good legal basis. Third, the commercial insurance companies cooperate actively.The limitations of catastrophe insurance in the USA include the following aspects: First, State insurance program has regional or local limitations including regional distribution and insurance capacity. Second, the federal government's insurance project also has certain limitation: According to the present NFIP insurance coverage rules, NFIP has a lot of limitation resulting in a limited degree security which limit the people to buy flood insurance to a certain extent.The second segment introduces Japanese catastrophe insurance system, and summarizes the advantages and limitations of Japanese catastrophe insurance system.The advantages of Japanese catastrophe insurance system include the following aspects: First, the commercial insurance company, state-owned reinsurance and the government formed the perfect triple mechanism. Second, the insurance companies provide the family and enterprises earthquake insurance separately. Third, the insurance companies accumulate initial funding through the earthquake risk reserve fund and underwrite limit as additional risk.The limitations of catastrophe insurance in Japanese include the following aspects: first, the government plays the part of the last reinsurer can cause the transfer payment problem. Second, in the reinsurance system of the country, the government supports the funds for the insurance companies and takes a risk itself. However, these risks will transfer to the taxpayers (policy-holder) finally. Third, national reinsurance system could induce moral hazard because of the country with the highest credit rating, and the insurance companies maybe reduce the input.The third segment induces the catastrophe insurance system of Norway. First, the paper introduces the general situation which includes two aspects. One is NNPP and the other one is natural disasters community. Then, the paper appraises the catastrophe insurance system in Norway, and points out its feature which is high degree of business operation and low degree of government involvement.The fourth segment summarizes the catastrophe insurance of developed counties for the reference. Firstly, Commercial insurance company plays an important role in catastrophe insurance system. Secondly, there is government involvement in catastrophe insurance system. Thirdly, they all have catastrophe insurance funds. Fourthly, it is a system engineering to build a catastrophe insurance system.The third chapter is the problems of our catastrophe insurance system faced and the consummation countermeasures.The first segment introduces the general the catastrophe insurance system of our country. Its features include the following aspects: first, the catastrophe insurance business separate from the government. Second, insurance company cannot build catastrophe funds. Third, insurance company does not have special catastrophe insurance premium income, and there is no reasonable premium, fourth, there is no well-developed reinsurance market in our country. Then, the paper points out the problems of our catastrophe insurance system. The problems include that agricultural catastrophe insurance is unbalance between the supply and demand, and earthquake insurance capacity is very limited, and the flood insurance is still in the primary stage of exploration.The second segment is the Economic Analysis of the failure in catastrophe insurance market in our country. First, the law of large number doesn't work. Second, catastrophe risk can not make time diversification. Third, the development of catastrophe insurance lack of legal and policy support. Fourth, the reinsurance market can not provide the totally diversification of risk. Fifth, the speed of risk securitization lower than expected. Sixth, the social public lack of risk and insurance consciousness.The third segment introduces the corresponding countermeasure to improve the catastrophe insurance system of our country. Then propose that our country should build the system which the government builds the catastrophe insurance funds and the insurance industry become the business entity. The specific countermeasures include four aspects. First, we should establish and improve the law and regulations. Second, we should strengthen the construction of system, and improve the enthusiasm of commercial insurance companies. Third, we should raise the proportion of reinsurance, and make the reinsurance combined with the government.. Fourth, we must accelerate the development of capital market, and improve the catastrophe insurance coverage capacity. Finally, we can establish and consummate the catastrophe insurance system of our country through the above countermeasures. |
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