Research On The Design Scheme Of Catastrophe Risk Securitization In China

Although modern society has realized the rapid development of science and technology,but for the prediction and control of natural disasters in a certain extent,human remains powerless,even in the process of rapid urbanization,population trend of increasingly centralized makes every major natural disasters to the human society caused serious influence,therefore,how to effectively compensate the catastrophe loss has become a new problem.Covered by the insurance company to control their own the principal means of catastrophe risk comes in two forms,one is to rely on insurance company compensate its own capital,another kind is passed on through reinsurance,however,these two methods there are obvious limitations,the amount of losses due to natural disasters for the growth rate is much higher than the insurance company scale and speed of capital accumulation,in the event of serious natural disasters by could impact the whole insurance industry,the impact and even destructive;And reinsurance as the main means of control of catastrophe risk,from a start in the field of catastrophe risk control has an important position,compared with other risk control measures,reinsurance incomparable advantage is its low price and flexible approach,however,re its insurmountable problem also exists defects,on the one hand,re are looking for new source of capital for catastrophe losses on the issue of powerless,on the other hand,the memory effect of credit risk and price is one of the important limiting factors re development road.National financial and social donation has always been a natural disaster in China after the main relief compensation mode,for a long time,the government in natural disasters plays the role of "at the end of the insured",on the one hand,people's insurance consciousness is weak in our country is caused by the current conditions;On the other hand,China's insurance market,whether the insurer or reinsurer,is limited in its ability to insure catastrophe risk.The government's financial burden with the increase of catastrophe loss amount is increasing,at the same time because of the traditional insurance industry to the catastrophe risk guarantee ability is insufficient,the disaster area reconstruction funds mainly rely on government assistance,the existing insurance market insurance products cannot meet the demand of policyholders' purchase,therefore,in order to reduce the country's fiscal burden and the development of domestic insurance,the insurance market in urgent need of innovative products to enhance the security level of catastrophe risk.Earthquake catastrophe bond as a kind of important connect insurance market and capital market financial innovative products,the earthquake catastrophe risk can be effectively transferred to the capital market,thus to some extent,alleviate the traditional insurance market to the problem of insufficient earthquake catastrophe risk guarantee ability.Issued by earthquake catastrophe bonds,can provide the earthquake disaster area reconstruction activities with strong financial support,reduced the national financial burden and the traditional insurance business premium pressure at the same time,also provides additional profit opportunities for bondholders.Through the discussion of the design scheme of earthquake catastrophe bonds,it can improve the insurance industry's ability to deal with catastrophe risk to some extent,and provide new ideas for innovative insurance products.This paper discusses the global number of natural disasters and economic lossand serious impact of earthquake on the economy of our country that the meaning of the securitization of catastrophe risk in our country,and then combed the domestic and foreign research on the theory of catastrophe risk securitization,Outlines the securitization of catastrophe risk securitization of the concept,principle and related products,has analyzed our country needs to develop the cause of the securitization of catastrophe risk.Then elaborated the related principle of earthquake catastrophe bond,illustrates the mechanism of earthquake catastrophe bond trading,triggering mechanism,analyzes the classic of earthquake catastrophe bond pricing model and the necessity and feasibility of earthquake catastrophe risk securitization in China.In the end,the data of earthquake loss in China in the past two decades were collected and analyzed,and the monte carlo simulation method based on bootstrap sampling method was used to price my earthquake catastrophe bonds.At the end of the article,according to the discussion of the full text,the paper puts forward some relevant policy Suggestions on catastrophe risk securitization in China.