The Design And Pricing Of Catastrophe Bond In China

As a natural phenomenon that causes great harm to people's lives,natural disasters will bring huge economic losses.In recent years,with the destruction of the human environment,triggered a global climate change,frequent natural disasters.According to the statistics of Munich reinsurance company,2016 due to a spate of destructive earthquake and tsunami catastrophe losses become the most severe since the 2012 year,total loss of ?175 billion,but the insurance loss accounts for only 30%,about $50 billion.Due to the limited ability of insurance companies,most of the catastrophe risk is exposed,so the transfer of insurance risk to the capital market has its inherent power.This article mainly through the introduction of foreign catastrophe bond products combined with China's specific national conditions to design a product with catastrophe bond operation mode of China's actual situation,the thesis studies the relevant pricing and on the basis of earthquake disasters in China as the sample data.One of the catastrophe bonds as a catastrophe risk management system is an important risk management tool,which connects risk insurance products with the capital market,venture capital market absorption capacity by strong resolve insurance institutions can not bear the risk of catastrophe,so as to promote the healthy development of the insurance market;but also promote the insurance institutions through the power use of the tools underwriting catastrophe risk,the effective protection of citizens property.This article starts from the catastrophe bond triggering mechanism,transaction structure,pricing theory and other aspects of the current foreign catastrophe bond products introduced;then analysis of catastrophe bond products attribute selection by combining with the current development level of China's capital market,and the construction of the operation mode of product of catastrophe bonds in PPP mode;finally,the earthquake disaster the loss of data from China from 1989 to 2011,using the statistical method to the pricing of catastrophe bonds is studied and pointed out that the great significance in the development of catastrophe bond in China.