The Development Trend Of Catastrophe And Its Influence On The Change Of World Insurance Industry

In recent years, since the greenhouse effect and plate movements becomeincreasingly active and new viruses mutate constantly, all kinds of catastrophe happenone after another, which make all mankind encounter more severe tests. The number ofglobal natural disaster shows a tendency of rapid growth, and the casualties and economiclosses caused by catastrophe are more serious. Faced with such serious situation, allcountries in the world usually make use of fiscal transfer to do post-disasterreconstruction in the hope of economic recovery as soon as possible. But compared withdisaster losses, the amount of government financial fund is quite limited. For nearly30years, the role of insurance has been accepted. This paper is aimed at providingenlightenment to our country’s catastrophe insurance mechanism construction through theanalysis of changes of the world insurance industry under the influence of thecatastrophe.The analysis indicates that the number of global natural disaster shows a tendency ofrapid growth, and the casualties and economic losses caused by catastrophe are moreserious. Under this situation, the world insurance industry continuously introduces manytypes of catastrophe insurance for different kinds of disasters, and seeks help from thecapital market with catastrophe insurance securities. Meanwhile, many new operators areset up. The operation mode is changed into three different approaches, includinggovernment-led mode, market-based mode and mode of cooperation between governmentand firms. Catastrophe insurance fund is used to purchase fixed income products. Inaddition, due to the regional distribution characteristics of catastrophe losses, non-lifeinsurance industry presents a non-balanced development.The enlightenment to our country’s catastrophe insurance mechanism constructionincludes the following aspects: First, the participation and support of the government isthe premise of catastrophe insurance system establishment; Second, we should give fullplay to the market mechanism function; Third, catastrophe insurance, which onlyprovides the basic living security, should implement differentiation rate and set thedeductible or franchise; Fourth, the catastrophe insurance fund use should put liquidityand security in the first place; Fifth, adequate funding and perfect risk dispersemechanism are the necessary guarantee of catastrophe insurance’s lasting business.