Study On Product Design And Rate Determination Of Farmhouse Earthquake Insurance In Yunnan Province

2008 Wenchuan earthquake caused great impact on our nation. Scholars began to discuss the need for earthquake insurance. Undoubtedly, earthquake insurance for rapid resumption of production and post-disaster reconstruction plays a great role. Especially for farmers, family property is the biggest house, so the rural housing protection is particularly important. Yunnan Province, one of the most serious earthquake affected provinces in China, it also has aspirations of earthquake insurance. Now, Chu Xiong has been carried earthquake insurance pilot of rural housing, but no to the province, similar to the other farmers in the earthquake risk in it, they are also have a strong demand for earthquake insurance. Therefore, the study of the Yunnan earthquake rural housing insurance has very important significance.We know the price of insurance products related to the demand for insurance products, pricing too high will cause insufficient effective demand, pricing too low may cause the insurance company’s profit decline or even bankruptcy. Therefore, a reasonable price is a necessary condition for insurance products can be promoted. Based on the analysis of earthquake risk in Yunnan Province and losses data, and using appropriate fitting function to simulating and using Va R method for rural housing in Yunnan earthquake insurance rates were determined in different areas of risk research.First, the implementation of the conclusions in Yunnan Province earthquake insurance is necessary and feasible. Second, the data are consistent with the loss of Yunnan earthquake generalized Pareto distribution; third is divided into three risk areas of Yunnan Province, respectively capita premium volume in each region. When the loss of 40% of rural housing earthquake losses, the lowest per capita premiums is 41.1 yuan. If the confidence level lowered, then the premiums will be further reduced.