| China has suffered from enormous losses brought by all kinds of catastrophes for a long time. The direct economic loss caused by the catastrophe was gradually rising in China since the1990s. Over the past decade, China’s annual direct economic losses caused by natural disasters are more than a hundred of billions and more than two hundred million people were affected.Economic losses caused by catastrophic risks in China are in overall upward trend, which is also consistent with the global catastrophe risks economic losses. However, the development of catastrophe insurance in China is not only far behind the mature countries and regions, but also inadequate to match with the current situation of China’s economic development and catastrophe insurance needs.Our catastrophe insurance system has been in its infancy. December30,2013, catastrophe insurance system was first established in Shenzhen. Pilot work also will continue to expand in Yunnan Province and Shenzhen, the direction of catastrophe insurance system development is still being explored. Therefore, research on Property Insurance underwriting capacity for catastrophe risks is meaningful.In addition to the introduction, the paper consists of four parts. The first part introduces related economic theory and measurement model on underwriting capacity. The second part measured the underwriting capacity of Property Insurance from several aspects as well as the underwriting capacity respond to catastrophic losses at different scales, and draws a conclusion that there are underwriting capacity gaps in both catastrophic risk and Property Insurance industry. The third part discusses the factors affecting the underwriting capacity of Property Insurance through qualitative and quantitative analysis. On the foundation of conclusions above, the forth part makes a suggestion that a catastrophe risks sharing mechanism should be established to develop insurance capacity of catastrophe risks. |
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