Seismic Risk And Earthquake Insurance Model

Earthquake makes a huge impact on the socio-economic and national securitythrough the development of the human society. With the rapid progress of urbanizationand the Chinese economy, the economic losses caused by the earthquake have anincreasing trend. As an effective means of sharing and compensating for earthquake loss,earthquake insurance gets the attention of the world and has been rapidly developed.Pricing is not just the core technology in the design of the earthquake insuranceproducts, but also a worldwide problem. Nowadays, some earthquake-prone countrieshave promoted an earthquake insurance system which has been implemented.Nonetheless, the study of earthquake insurance in China is still in its infancy, and acomplete system of earthquake insurance pricing is not formed. Therefore, establishinga scientific and rational earthquake insurance pricing model which considersengineering seismic risk and operational risk to the insurance company is veryimportant and necessary.An earthquake insurance classification ratemaking model combined with seismichazard analysis, structural vulnerability analysis, insurance-scale analysis and financialrisk analysis is proposed in this dissertation by using classification ratemaking method.Firstly, this paper briefly analyzes the seismic risk and management of seismic risk inChina and analyzes the status of earthquake insurance in Japan, California and Turkeyin detailed. On the basis of earthquake insurance study at home and abroad, this thesissums up the general process of earthquake pricing for the single building. Secondly, themodel is divided into four modules of seismic hazard, structural vulnerability,insurance-scale and financial based on analysis of the rate structure and factors. Thus,this model partitions earthquake insurance rates by dividing the insurance zones andclassifies earthquake insurance rates by structural vulnerability analysis. In addition,this article systematically analyzes the influence of site condition, construction purposes,the risk of secondary disasters, building fortification standards and building generation,discusses deductibles, relative deductibles and percentage of compensation andproposes a new model of earthquake insurance pricing. Thirdly, combining with GIStechnology and cloud computing, this paper discusses the construction of earthquakeinsurance pricing system and puts forward a reasonable architecture of earthquakeinsurance pricing system based on earthquake insurance classification ratemaking model. Finally, this dissertation prices earthquake insurance in Fuzhou by usingearthquake insurance classification ratemaking model, analyzes the sensitivity ofinsurance rate and puts forward relevant policy recommendations for the sustainabledevelopment of earthquake insurance in China according to the simulation results.