Research On The Catastrophic Insurance Risk Securitization In China

In recent years,natural disasters occur frequently in China,and the resulting losses are also more and more serious.The reinsurance industry in China started late,the market is not perfect enough,the lack of adequate funds to spread catastrophe risk,so the loss caused by natural disasters in this stage is mainly borne by the government.After natural disasters,mainly through government funding and called for social donations to relief,resulting in government spending is not stable,especially to the local government has brought great burden,serious impact on the fiscal balance of local government.Through the traditional reinsurance to disperse catastrophe risk has limitations.But catastrophe insurance risk securitization by issuing catastrophe insurance securities,transferring catastrophe risk into the capital market,relieves the problem of insufficient solvency of the insurance market.Catastrophe bonds as the most successful catastrophe insurance risk securitization products,in the international market has been more and more popular.Is our country's insurance market and capital market,the development situation of catastrophe bonds is also the most suitable for the introduction of development,but also from the experience of a large number of issuing catastrophe bonds abroad advance process of catastrophe insurance risk securitization in China.In this paper,we first introduce the basic theory of catastrophe insurance risk securitization,including the generation of catastrophe insurance risk securitization,the basic principle,the main risk and the main products.Then taking the catastrophe bonds as an example,this paper introduces the operation mechanism of catastrophe bonds and the operation procedure of the USAA catastrophe bond in the United States,and obtains the experience of developing catastrophe bonds in our country.At the same time,combined with the current situation of China's catastrophe insurance market,the necessity,feasibility and hindering factors of the development of catastrophe insurance risk securitization in China are analyzed.Finally,according to the current situation of the development of insurance market and capital market in China,learn from foreign experience in the development of catastrophe insurance risk securitization,makes the discussion to the way of China's catastrophe insurance risk securitization,then give my personal suggestions.