The Research On Problem Of Earthquake Insurance Pricing Which Based On The Dfa

Earthquake insurance is an interdisciplinary, multi-subject subject which combines seismic geology, engineering disaster prevention science, insurance and economics. Some foreign earthquake-prone countries have built and implemented earthquake insurance system, but our research in this area still in its infancy. Our country has not established a relatively complete system for risk assessment of earthquake insurance, not yet in-depth research in earthquake insurance risk and insurance rates. Research on this topic has a great potential value.Pricing is the key to establish insurance. In this paper, the author analysis the characteristics of the risk of Earthquake, then describes the dynamic financial analysis (DFA) pricing theory and application to earthquake insurance pricing practice in order to make some contribution to the development of earthquake insurance in China.The paper is divided into five parts:The first part is an introduction about this chapter research background and significance, while including the literature review and contents and research methods.The second part is the study of the risk of earthquake and the insurance of earthquake. The earthquake risks are unexpected, wreck and the defense is difficult, so it requires different pricing models. Then introduced the home and abroad occurrence of earthquake risk profile, on this basis, introducing what is earthquake insurance and the significance and role of Earthquake.The third section describes the development of domestic and earthquake insurance, first introduced the development process and current state of China's earthquake insurance system, analysis of the reasons for lack of earthquake insurance system. Comparison the status of implementation earthquake insurance in all countries, this provide a basis and reference for making Earthquake insurance rates. The fourth part:Introducing the method of dynamic financial analysis (DFA). First introduced the DFA and the evolution and characteristics of the theory, then describes the modeling framework of the DFA analysis and explain DFA in the insurance application.Part V:Establishment the model of earthquake insurance pricing based DFA. The model divided into three modules:rate module, reinsurance module and ruin probability module.Part VI for further application of the model to solve the real problem. First using this model to calculate the probability of bankruptcy. Calculate how to select the appropriate start-up capital and additional premium which could reduce the probability of at an acceptable level.