The Research On Operational Mechanism And Pricing Of Chinese Agricultural Catastrophe Bond

In recent years,because our country agricultural catastrophe risk occurrence,progress,loss rate and its uncertainty are different degrees of changes have taken place,the parts from agricultural risk of maintaining the basic needs to change to a higher living,namely gradually towards the demand for agricultural catastrophe insurance products.Different scale of planting area of farmers' demand for agricultural insurance has deviated gradually,in the traditional agricultural insurance market,in a different location,different farming scale and various natural environment conditions,the demand for agricultural insurance are consistent,there is no agriculture risk(general risk and agricultural catastrophe risk)of fine management,therefore,analysis of the operation mechanism of dealing with the agricultural catastrophe risk is very necessary.The core research contents of this paper is divided into two parts: the part is to establish the agricultural catastrophe risk coping mechanisms of trigger condition(based on continue issuing catastrophe bonds catastrophe fund value reaches 0).Will happen after the underwriter underwriting,regular and irregular income and spending: on the one hand,the insurer will regularly received from farmers balanced pure insurance cost;On the other hand,the insurer will produce irregular claims costs.In this way,form a catastrophe fund with characteristics of surplus value.But agricultural catastrophe losses,make catastrophe fund value is declining,collision 0 in the short term.Based on this,agricultural catastrophe bonds,for example,this paper studies the operation mechanism of agricultural catastrophe risk securitization process.That will be issuing catastrophe bonds get join the catastrophe fund of funds,can make ongoing catastrophe fund value jumps,so as to avoid the catastrophe fund value quickly reached 0.Due to the agricultural catastrophe risk securitization mechanism in the process of operation,reasonable catastrophe bond pricing is very important link,the whole system as a result,the catastrophe bond pricing as the main research contents in this paper,the second.Through the study in this paper,the theory and test certificate,found in the risk of different mode of agricultural catastrophe risk securitization operation mechanism failure probability and the funds raised through issuance of catastrophe bond are different.On the basis of actuarial equivalence principle,to accurate pricing of catastrophe bonds,and then decide on the operation mechanism for effective optimal under the assumption of initial catastrophe bonds to be issued by the lines and the sensitive point catastrophe bonds to be issued.As long as in the sensitive time continue to issue bonds,agricultural catastrophe risk securitization operation mechanism can be infinite time run down;Other conditions in the same situation,based on the probability and the time value of money catastrophe bond price is lower than the normal bond prices;And in certain circumstances,agricultural catastrophe risk securitization mechanism failure probability is only related to the safety of the insurer to policy-holder to charge additional premium.