Construction Of Catastrophe Insurance System In China

In recent years, different kinds of catastrophe happened with high frequency, caused great harm to people's lives, economic development and social stability in a wide range. China is a country that quite frequently attacked by natural disasters,such as floods, typhoons and earthquakes and so on,which happened every year, bringing in substantial economic losses. However, faced with catastrophe, our risk reduction measures are absent or not complete.And the compensation are largely dependent on government finance and social contributions, a catastrophe insurance system is unfounded. This situation caused great pressure on public finances, while not conducive to the smooth progress of post-disaster reconstruction and the rapid recovery of people's lives. The snowstorm and Sichuan earthquake in 2008 is once again highlighted the urgency of the establishment of a catastrophe insurance system. Against this background, what this paper discusses has great practical significance.Catastrophe insurance system effects not only in post-disaster compensation,but also in the pre-disaster risk-reduce.It shares the cost of pre-disaster risk-control that no one is willing to pay for, and ultimately achieves the target of reducing the vulnerability of the affected body, improving the quality of the whole society,reducing or even avoiding catastrophic losses in a whole.The catastrophe insurance system is not a unilateral supply of the government or insurance companies,it needs the government, markets and society to participate in the formation of multi-subjects together, creating a "self-help and mutual aid, public assistance" for the multi-level catastrophe risk management model.The author explains catastrophe insurance-related concepts, including catastrophe, catastrophe risk, catastrophe insurance, catastrophe insurance system, etc., based on it is the analysis of catastrophic risk insurable, so as to identify the difficulties may encounter in the establishment of catastrophe insurance system in theory. Followed by description of the status of China's catastrophe insurance system, about the public unawareness of insurance, catastrophe risk inefficiency management, backwardness of legal and financial supports, and various aspects of difficulties in the establishment of catastrophe insurance system in practice. Then introduce foreign advanced catastrophe insurance program, summed up their worth experience. Finally, based on the foregoing analysis, the relevant policy recommendations, including the establishment of a multi-agent cooperation catastrophe insurance system,of aneffective insurance mechanism for risk diversification, the principles and specific methods.The discusses use analytical tools of economics, while refer to the public goods theory, theory of government functions and other theoretical framework.Subject to the uncertainty and computational complexity, and the author's own capacity constraints, this study aimed at a practical level, that is, what kind of catastrophe insurance system is to build, as well as how to build it, and those in theory, such as pricing for insurance and catastrophe bond, deductible level,a specific percentage between the government and the insurance companies to share the loss,is not for discussion. In addition, a catastrophe insurance system should work with individual countries to adapt to specific conditions in different periods, there is no best catastrophe insurance system, this article is only based on the current situation of our country to build its recommendations made shallow, and the discussions is open.