Establishment Of Earthquake Insurance System In China

Earthquake often brings great disaster to human, especially the large earthquakes occurred frequently in recent years, and resulted in huge losses of people and property. Obviously, it's not appropriate to make the government hold entire responsibility in compensation and reconstruction after the disaster. As a reserve resource and compensation instrument, the role and effectiveness of earthquake insurance can not be ignored.There are numberless of disasters and losses brought by earthquake in history. Our country is on the circum-Pacific seismic belt, and suffered from earthquake disaster deeply. However, the current development of Chinese earthquake insurance is not optimistic. Therefore, China urgently needs an effective earthquake insurance system to reduce the losses caused by earthquake.The purpose of this thesis is to discuss how to set up our own earthquake insurance system through consideration of all aspects.The full-text is combined with four parts.Chapter 1:Earthquake risk and Earthquake insurance.This chapter introduces and analyses basic problems of the earthquake risk and earthquake insurance. It's the logical starting of the thesis.First, analyze the characteristics of earthquake risk. Earthquake risk is characterized by strongly sudden, badly damaged, widely influenced, difficultly predicted, and rarely recurred in one spot. It's harder to control earthquake risk than other natural disasters risk.Secondly, sum up the characteristics of earthquake insurance. The specificity of the earthquake decides the special requirements of the insurance. There exists typical market failure in earthquake insurance market, and the effective way is to let the government participate in this marketplace, and provide earthquake insurance products together with commercial insurance companies. Chapter 2:The earthquake insurance of system foreign countries (regions).This chapter studies developments of international earthquake insurance, and review some typical earthquake insurance system models, which include not only developed countries (regions),such as the United States, Japan, Taiwan, but also developing countries such as Turkey, Mexico.These countries have different political systems, natural conditions, economic conditions and cultural traditions, ex, therefore, their national earthquake insurance systems also have different development experience. Then we can conclude the experiences of these countries (regions).First, analyze the earthquake insurance systems under personal insurance mode. The countries(regions) which take this kind of model include California, Japan, Taiwan and Turkey. I will analyze these countries' earthquake insurance systems from four aspects, which are the establishment backgrounds and related laws, the core institutions and operating agencies, the design of earthquake insurance, the operation security of earthquake insurance.Secondly, analyze the earthquake insurance systems under sovereignty insurance mode. The country which takes this kind of model is Mexico.The sovereignty insurance model is new, so fewer countries adopt this model. As the same, I will also analyze this country from four aspects like above.Finally, compare-and summarize these earthquake insurance systems mentioned above, and get the experiences, which include participation and supporting from government, the opportunity and legislature of establishment, the core institution of earthquake insurance system, the distinction between compulsory and voluntary insurance, risk diversification and stratification payment.Chapter 3:The actuality of Chinese earthquake insurance.This chapter analyzes the development and actuality of Chinese earthquake insurance, and put forward the problems to be faced with when establish our country's earthquake insurance system.Firstly, review the development and actuality of Chinese earthquake insurance.By reviewing the development process of Chinese earthquake insurance, and analyzing the Chinese earthquake insurance market, we can see that our country's earthquake insurance have extremely limited function when distribute risks and compensate losses.Second, list the specific representation of Chinese earthquake insurance's problems, which include:①Lack of government support and effective management②Weak public awareness of the insured③Rate pricing is too extensive④Underwriting earthquake risk is not reasonable⑤The lack of effective risk control channelChapter 4:Establish Chinese earthquake insurance system.This chapter is the focus of this thesis.The above chapters have analyzed the characteristics of earthquake insurance, the earthquake insurance of system foreign countries (regions),the problems of Chinese earthquake insurance. All of these provide references from all aspects for establishment of Chinese earthquake insurance system.The risk management of the earthquake in China is basically in a missing status, therefore, the establishment of earthquake insurance system is in urgent need. This chapter describes how to establish Chinese earthquake insurance system from three aspects, which are framework, clause and operation security of earthquake insurance.The main contribution of this thesis:First, the topic. This thesis is not a general discussion of catastrophe risk management system, but focus on the earthquake risk which is the specialist and most urgent need for risk management in catastrophic risks.Second, the research perspective. The difference from other articles is not just researching on the selection of earthquake insurance model, but also considering how to build Chinese earthquake insurance system by all aspects as far as possible.Third, put forward the implementation of the program. Unlike the majority of the article which only make appropriate policy recommendations for establishing Chinese earthquake insurance system, this thesis propose the concrete implementation of the program. The shortages of this thesis:First, because there're some difficulties in collecting detailed data of some foreign countries' earthquake insurance system, so the analysis of international earthquake insurance system is not perfect;Second, because the establishment of Chinese earthquake insurance system is a systematic project, which involves many aspects, so it's hard to avoid ill-consideration.