The Research On The Mechanism And Countermeasures Of Insufficient Supply Of The Environmental Pollution Liability Insurance

Environmental pollution liability insurance which is also called Green insurance, underwrites compensation liability which companies should undertake when they pollute the environment and cause hurt to the third party, according to laws. It can promote environmental protection and make sense to harmonious society, through claims mechanism, rate making mechanism and risk management service. Environmental pollution liability insurance has been maken experiments in some provinces recently. Under laws and regulations, the demand has increased, but the supply is still insufficient. Consequently, the demand and the supply can't balance at a reasonable rate, which is not goog for the development of environmental pollution liability insurance. So the purpose of this thesis is to explore a supply model of environmental pollution liability insurance, which can achieve the balance of the demand and supply.Basing on Western economics theory and combining with the characteristics of environmental pollution liability, the thesis analyzes the internal and external cause of the insufficient supply. The internal cause is that there is external economy when insurance companies underwrite environmental pollution liability insurance, which can easily cause insufficient supply. The external cause is that the data and experience is insufficient, which makes insurance companies incompetent to develop product and underwrite.This thesis analyzes several foreign models and draws on experience. These models have their own characteristics and conditions of application. So conbining with the present situation of China that the current environmental laws and the insurance market of environmental pollution liability insurance are still not perfect, and the laws and regulations haven't effectively supported the insurance, we should carry out mutual environmental pollution liability insurance. Analyzing with the Western economics theory, mutual insurance companies are more suitable to underwrite the environmental pollution liability insurance than stock insurance companies, which can improve the supply of environmental pollution liability insurance, and balance the supply and demand with a reasonable rate. Moreover, Chinese social construction pays more attention to friendly environment, which makes mutual environmental pollution liability insurance possible. In practice, for one hand, this thesis suggests government should enact relevant legislations, give appropriate fiscal support to enterprises and insurance companies, establish and improve matching mechanisms. For the other hand, this thesis suggests mutual insurance companies should expand the coverage of environmental pollution liability insurance, adopt advanced premium method to collect premium, introduce fuzzy information and comprehensive evaluation theory to rate the environmental pollution liability insurance, issue reinsurance to share the huge amount of compensation liability. The thesis provides an example to show how to get rates through fuzzy information and comprehensive evaluation theory.