Study On Dynamic Programming Model Of The Industrial Injury Insurance Fund Utility

The Industrial Injury Insurance Department director of Labor and socialsecurity ministry Chen Gang has stressed in2008about the new hotspots of industrialInjury Insurance,“the development of Times requires Three-in-One Industrial InjuryInsurance System of prevention, compensation, rehabilitation.” Since the new systemis still in the pilot stage of exploration at present, the key spot is how to reasonablydistribute IIIF, to maximize the utility of the fund in the process of the “Three-in-One”Industrial Injury Insurance System development.In the first three paragraphs of this passage, through study on the status of theindustrial injury insurance and theoretical basis of literature it has been shown that,Chinese Industrial injury insurance system has made great achievement in the idea ofestablishing the system, legislation level, security level, and its coverage. China hasbegun to explore the Three-in-One System in the recent years. Especially afterissuing the Outline, industrial injury prevention and rehabilitation pilot has expandedorderly in the whole nation. However, the industrial injury insurance development isstill on the challenge because of the high industrial injury casualty rate, extremely lowlevel rehabilitation.In the fourth chapter, based on the development requirements for the system,this article has forecasted the expenses of2010-2020both in the current system andunder Three-in-One system, which is done in actuarial way by using the existingdata and pilot experience, and also by reasonable hypothesis for related variables. Atlast of this chapter, this article has shown the visible benefit of the Three-in-One system through comparison of the different expenses in the two kinds of modes, and demonstrated the necessity and rationality of the new system.In the fifth chapter, this article has established the expected utility function ofIIIF, built the dynamic programming model on the fund utility, and then operated theoptimal structure distribution ratio of IIIF in matlab7.0environment, which is ofsignificance and reference value to the development of the system. Because of thecurrent stage of the system and the period needed to build the facilities for developingprevention and rehabilitation, the author suggested that the realization of the optimalfund expenses ratio this paper got be experience a gradual process, which is an idealobjective result to achieve for the industrial injury insurance system.Finally, combined with the optimum ration of fund through dynamicsprogramming, this paper provides some suggestions about the allotment of fund andthe direction for using the funds for industrial injury insurance in different stage of thefuture ten years.