Catastrophe Risk, Non-traditional Risk Transfer Mode (art) In The Study Of Earthquake Insurance In China

China is one of the few countries where the natural catastrophe is severe, for her large number of people, broad terrain, complex geography and changeful climate. The direct economic loss of all kinds of natural catastrophe climbs high to hundreds of billion RMB every year averagely. Among all the natural catastrophe, the affect of earthquake is the most severe no matter to life or to economy, so earthquake has the title of "the leader of all natural catastrophe". China hasn't established her own scientific protection system against catastrophe, state finance has to shoulder the substantive loss made by catastrophe and it poses great pressure on the state's finance. Considering on those condition, the author, on the base of introducing the recent ART research condition of foreign, proposes a new way of establishing our own earthquake insurance system.First, the author derives the concept of ART by analyzing the positive and negative effects of catastrophe to insurance market, and then, the author summarizes the theory of ART inside and outside country respectively. The study of foreign country's ART is focused on the background of ART study, main products of ART and the channel, while the study of domestic country's ART is focused on the potential require of ART product and establishment of our own protection system against earthquake catastrophe. Then the author makes an emphases on the key way of ART practice-securitization of catastrophe risk, and then through analysis and contrast, we draw the conclusion that securitization of catastrophe risk is a kind of innovative and makeup way of reinsurance and the relation between them is complementary to each other. This conclusion gives an explicit answer to the question in discussion.In the section of application study, the author makes a summarization of our country's catastrophe loss especially the loss made by earthquake, and analyses the character of our country's earthquake catastrophe. Then the author demonstrates theinsurability of earthquake insurance and points out that the potential acquire of earthquake insurance is large, but the effective supply of this insurance is urgent insufficient, all those show the practical meaning of introducing ART way to our country's earthquake insurance.Finally, basing on the research in existence, the author brings forward innovatively an advice that the practical choice of ours is to issue state-oriented earthquake catastrophe bond guaranteed by government prestige. And the author is the first one to draw the flow chart of earthquake insurance operation. Through the flow chart, we can see clearly the relations among the undertakers of every level. Lastly, the author makes an expectation of the future of the development of our country's earthquake catastrophe insurance.