Research On The Development Model Of Catastrophe Insurance In China Base On Earthquake Disaster

China was seriously affected by the earthquake disaster,with high frequency and large intensity and wide distributive.Every time the earthquake disaster has caused our country to varying degrees of economic losses and casualties.However,There has been a situation that earthquake disaster loss insurance payment rate was low and the amount of claims less when compared with the average level of international earthquake disaster loss insurance claims,so it was a prominent problem that needs to be solved in our country,and the establishment of catastrophe insurance system may be a better solution.In August 2014,China issued "new country ten" in the insurance industry which the first time to clear establishment catastrophe insurance system and the catastrophe insurance made a breakthrough in the top-level design,It is possible to establish the development model of earthquake catastrophe insurance that chosen earthquake disaster as the main cause of disaster according to the situation of our country.The article first analyzed the situation of earthquake disaster in China and the future of our country’s earthquake situation was still grim,and then elaborating the impact of earthquake disaster on the socio-economic influence in different regions of China,analysising of the irrationality of the earthquake catastrophe loss model derived by the method of probability and statistics,so it put forward the earthquake disaster losses in different regions of China had regional differences,and to evaluate the direct economic losses of the earthquake disaster in different regions of China.Secondly,the article introduced the financial instruments of earthquake catastrophe insurance and to determine the earthquake catastrophe insurance premium and premium rate,then design earthquake catastrophe bonds and pricing.It was concluded that the different regions of China had different expected returns in the different earthquake catastrophe bonds which corresponding of different magnitude level.Thirdly,we compared the earthquake catastrophe insurance system of the foreign developed areas and summed up their general characteristics and respective advantage,from which we could get the enlightenment to establish of the earthquake catastrophe insurance system in China.At the end of the paper,we hold the opinion that the development model of China’s earthquake catastrophe insurance should be set up by the government as the leading factor and combination with market,and according to the situation of different provinces,making the province as a unit to set up central and provincial government earthquake catastrophe insurance fund,central government and the central earthquake catastrophe insurance fund,the provincial earthquake catastrophe insurance fund and the Business insurance company was composed as the three party insurance bodies,and the compensation mechanism for the loss of earthquake catastrophe was divided into different levels.Finally,according to the research conclusion,we put forward some suggestions for the sustainable development of China’s earthquake catastrophe insurance system,and makes a prospect for its future development.