The Study On Catastrophe Insurance Pattern Based On Emergency Funds Mechanism

Catastrophe insurance has already become the hot zone of the insurance research area. Facing the risk of catastrophic, a lot of countries set up the most effective emergency solution to distribute the catastrophic loss. In China, the victims will mainly rely on emergency assistance from the government to recover after suffering disaster, but the disaster relief funds hardly satisfied the need of the victims.This article starts from the current situation of the emergency management in China, and states the insurance fund's characteristic. It comes to the conclusion that China needs to set up a insurance mechanism for catastrophe, which introduces the national insurance program. This mechanism should suit our county's conditions, and solve the catastrophic fund problem on the certain extent.Chapter 1:Introduction. This chapter is the overall planning. Based on the research topic, a lot of papers either home and aboard have been read and summarized. It's found that the catastrophic risk is not fully insurable from the insurance and economics theory. Most of the literatures put forward the pattern of catastrophic insurance which introduces government and business co-operation. Base on the reviewed papers, I make sure the main topic of my research:try to find the pattern of catastrophe insurance system on the basis of emergency management. The system should suit to China's model based on the government's perspective. Finally, the paper possible innovative point and difficulties are explained.Chapter 2:our emergency management system. Firstly, the catastrophe is introduced theoretically, and its grimness in China is analyzed perceptually. Secondly, China's current emergency management system is briefly described. The concept of emergency management and emergency response system are introduced. Based on the 5/12 earthquake, the deficiencies of the emergency response system is analyzed. Because of the emergency system's imperfections, the emergency funds are not enough and not highly effective. Although the characteristics of each stage of the funding needs are different, financial resources can not meet the contingency funds of the demand.Chapter 3:China's emergency financial system in an emergency situation. This chapter focuses on the four sources of emergency funding characteristic analysis. The advantages and disadvantages of financial funds, bank funds, social donations funds and insurance funds are analyzed. The financial resources, donated funds, and the bank funds for government credit are raised, and their number is limited entirely by the government. The catastrophe insurance funds can distribute the catastrophe risk largely. Insurance funds can reduce the government burden, and improve the efficiency of disaster relief. The catastrophe insurance system suitable to China needs to be established urgently.Chapter 4:the foreign experiences of the catastrophic insurance model under national emergency system. This chapter introduces the National Flood Insurance Program, German's market-based catastrophe insurance, and Japan's earthquake insurance mode. Focused on the role of government and the market in catastrophe insurance, the system model suitable to China is finally found out. Copying the model of other countries will certainly be acclimatized, but the international experience can be learnt to find suitable models for China's development framework.Chapter 5, the framework of catastrophe insurance based on China's emergency response system is conceived. This chapter is divided into two parts. Firstly the three kinds of catastrophe insurance model are compared according to China's insurance industry development. Secondly, the institutional framework for the patterns that have been selected is mainly designed. The policy-oriented insurance principles are explained. The fund sources of policy-oriented insurance company are figured out. The catastrophe insurance system framework for spreading the risks is established. The role of policy-oriented insurance system in the emergency management system is advanced. Final section sums up some proposals which can improve the catastrophic risk management.