A Research Of Flood Insurance Loss Assessment Based On Building Vulnerability

Flood insurance belongs to the category of catastrophe insurance.Owing to the late start of insurance business in China, researches on insurance are lagging behind. In recent years,the theoretical researches on flood insurance done by experts and scholars are confined to qualitative analysis,such as the selection of flood insurance modes and the establishment of flood insurance systems.However, there are barely studies on the damage assessment of flood insurance.So is the same with the pricing of flood insurance.Even in some nations where flood insurance is well developed, no general agreement is reached on the mode of damage assessment of flood insurance. This paper, based on the accepted methods of assessing the damage caused by floods, focuses on architecture vulnerability, which would be combined with ther assessment of flood damages.Finally out comes the value of the assessed loss of flood damages. Then more effective pricing mechanism of flood insurance is expected.This paper features with the architecture vulnerability, as variables,being taken into the mode of the damage assessment of flood insurance.Based on this, the following aspects are studied in the paper.First, a brief introduction to the common method employed in assessing the loss caused by floods:the fitting of distribution of flood damages and ratio of flood damages.Due to lack of data relevent with flood damages at county's levels,the national wide data of compensations for flood damages and the flood frequency is introduced, from which resulted the conclusion that the degree of flood damages in China is in accordance with Inverse Gaussian distribution and that flood frequency is in accord to Possion distribution. A county's damages caused by flood could be calculated approximately. The ratio of flood damage is brought in to establish the mode of mutiple-factors-regression ratio of flood damage.Then with the basis of GIS, flood damages can be assessed by analysing the traits of flood risks.Second, according to the formula of standard natural catastrophe disaster, by analysing the concept,the mode of architecture vunaribility index is established.With quantitative analysis into the vunaribility factors,such as risk levels related wih the floors,structures and locations of architectures and the assosiation with the accurate data of architectures in county A, it is possible to attain the architecture vunaribility index of county A.the mathimatical outcomes demonstrates the mode of vunaribility index is in perfect accordance with reality.Third, whatever the combination of the fitting of flood damage distribution and arcitecture vunaribility or the combination of the flood damage ratio and arcitecture vunaribility is adopted, the result still contains both 2 parts,which are information of factors incurring catastrophe and the information of the suffuring.Thus,the consistency of the 2 mathimatical methods demonstrates that the loss of flood damages can be assessed effectively in various ways with the architecture vunaribility as variables on the grounds of the flood insurance coverage and underwriting model. Futher mors,ome theories and references would be offered to the developing of flood insurance in China.