Risk Analysis On Environmental Pollution Liability In Chemical Companies And Research On Pricing Of Environmental Liability Insurance

Up to now,the frequent occurrence of environmental emergencies in China has caused serious impacts on the ecological environment and people’s personal and property safety,among which,the proportion of environmental emergencies in chemical companies has always been the highest.The emergence of environmental liability insurance can promote the development of China’s environmental protection.However,the development of environmental pollution liability insurance in China is not yet perfect.Insurance pricing is not reasonable is one of its main problems.This type of insurance has the characteristics of high risk heterogeneity and intercross,and it is difficult to determine accident losses.Therefore,it is necessary to use nonlife insurance actuarial methods to determine the insurance rate based on risk analysis and assessment.A risk analysis on the environmental pollution receptors,pollutants,and factors that cause pollution in chemical companies will be performed,and then risk indicators are established and being classified into different levels.By using these risk indicators,a generalized linear model of loss amount and loss times is established to obtain the final impact of each risk indicator on environmental pollution risk.The value of pure premiums in insurance pricing can be defined as the product of the expected loss amount and the expected loss times.Based on the results of the risk assessment,the pure premiums and premium rates adjustment of environmental pollution liability insurance can be obtained.Liability insurance clauses generally include deductible clauses and compensation limit clauses,both of which can reduce the cost of insurance companies,so it is necessary to consider the impact of deductibles and compensation limits when calculating pure premiums.The risk assessment model and insurance pricing model were fitted and verified by runing the found environmental accident loss data.The loss amount distribution conformed to the Gamma distribution and the loss frequency distribution conformed to the Poisson distribution.All the parameters obtained passed the significance test under 5% confidence interval,indicating the rationality of the model establishment.Thus,the impact of each risk level on the final loss can be obtained,that is,the environmental pollution assessment result of the chemical enterprise,and further,the pure premium and rate fluctuation under deductibles and compensation limits can be obtained.