Research On The Catastrophe Parametric Insurance

In recent years, China has suffered from frequent natural disasters, which has given rise to a large number of personal casualty and property loss. Catastrophe insurance has played an important role in dispersing risks and making up the loss. However, China's catastrophe insurance legal system is still in a state of absence. Based on the legal issues of catastrophe parametric insurance, this article will discuss the legitimacy of catastrophe parametric insurance, the contract law problems of catastrophe parametric insurance and the legal structure of catastrophe parametric insuiance fund, which will provide the reference to the construction of the legal system of catastrophe parametric insurance in our country.This article is divided into three parts. The first part studies the legitimacy of catastrophe parametric insurance. First of all, the catastrophe parametric insurance is in line with the insurance law of great number theory, the risk of catastrophe parametric insurance is large and homogeneous and have insurable interest, thus having the legitimacy from the perspective of insurance. Furthermore, catastrophe parametric insurance can realize the social public welfare purposes. Catastrophe parametric insurance can realize the purpose of enhancing general well-being between social members,protect the interests of the weak and compensate victims who have losses in disaster. Finally, catastrophe parametric insurance will realize "the public happiness".Lastly, catastrophe parametric insurance follows the basic principles of insurance law.The insured can get lost due to the loss of the subject-matter insured interest, which will not lead to moral hazard and conform to the principle of insurable interest. The insured losses due to disasters can be compensated, and will not get extra benefit by insurance compensation, which conform to the principle of indemnity.The second part, this article will discuss the contract law of catastrophe parametric insurance. This article will discuss respectively from coverage rate and the selection of standard of catastrophe parametric insurance and catastrophe parametric insurance claims.Academics about the coverage of catastrophe insurance have controversial points, which puts forward the catastrophe parametric insurance shall cover the man-made disaster and the life or personal injury. Man-made disasters caused huge losses in our country, and other countries have many insurance legislation cases of man-made disasters.Catastrophe parametric insurance can cover the personal casualties owing to the realistic need, and the catastrophe parametric insurance in our country at present pilot coverage also includes personal casualty. The catastrophe distribution occurred in China is different and there exists the gap between rich and poor. Applying to a single rate will cause the unfair phenomenon. As we can draw lessons from differential cost rate of the legislative cases in Japan and the United States, catastrophe parametric insurance in our country prefer to the standard of the differential cost rate. In terms of the compensation of catastrophe parametric insurance, insurance companies should combine historical data to develop a scientific and reasonable compensation condition. It is suitable for our country to choose the variable amount of compensation as the compensation way.In the third part, this article will discuss the legal construction of catastrophe parametric insurance fund, including the legal nature of catastrophe parametric insurance fund, the establishment of the fund, the governance structure of catastrophe parametric insurance fund. The legal nature of catastrophe parametric insurance should be a special legal person. The capital sources catastrophe of parametric insurance funds should be provided by the joint venture of the government and the insurance company and need to make a distinction between the initial stage and operation stage of source of funds. As for the establishment mode of catastrophe parametric insurance, it is better to set up a catastrophe parametric insurance fund which specializes in particular coverage. The governance structure of catastrophe parametric insurance fund should include the board of directors, special fund management department and the fund custodian.