The Reserch On The Influence Factors Of Catastrophe Insurance Demand

With expansion of the frequency and the amount of loss as the catastropheoccurred, from the academic, corporate and Government concern catastrophe riskdisperse using insurance market. In the study of current practice and, moreconcerned with design of catastrophe insurance system, that is, problems on thesupply side, have not much demand-side research. Found in the catastropheinsurance practices, such as problems with low insurance rates the demand-side canlead to market failure, system design on the supply side effects greatly discounted.From the perspective of theoretical research, current catastrophe insurance needsalso appears less general references, lacks empirical literature, and participants focuson United States and so on ’s voice rising cases of, There is a need to study on thebasis of the demand-side. calling for catastrophe insurance system in our country.This article focuses on the catastrophe insurance demand characteristics andinfluence factors, finding catastrophic insurance demand curve bendingcharacteristics, which led to the catastrophe insurance market appear more balanced,also lead to market failure. Factors that will affect the demand for catastropheinsurance is divided into objective and subjective factors, respectively theestablishment of corresponding theoretical model analysis of the influence factors ofthe path and how much. On the basis of theory study, we use data validation innine provinces in China China’s flood, Typhoon, earthquake insurance requirementinfluence factors and impact of, respectively, use the a panel with backgroundanalysis methods. Article also designed the experimental methods to verify that therisk of effects on flood insurance requirements, and specific design of theexperimental programme. Finally, the conclusions of the study on the combination oftheory and empirical research, from the demand-side of catastrophe insurance systemdesign was made three suggestions.Chapter I addresses why study on catastrophe insurance needs as well as of thebeginning of the study. In recent years, especially the foreign literature in early2011 and2012, carding status and problems of study on catastrophe insurance needs, andfocus on three types of empirical methods and analysis, lays the Foundation for thefull text of the methodology.Build catastrophe insurance requirements in chapter II of the researchframework, study on catastrophe insurance requirements on the insurancerequirements under the research system, reviewed the main features of personal andbusiness insurance needs and research methods. Made the primary method of studyon catastrophe insurance requirements, and analysis of the differences betweencatastrophe and natural disasters in General, the demand for catastrophe insuranceand general insurance needs analysis distinguishes.Chapter III analyses the characteristics and objective factors of catastropheinsurance, using static analysis methods, using the expected utility model and therank-dependent utility model found, catastrophe insurance demand curve has a bendback feature, this feature causes are zero is also a market equilibrium between supplyand demand, this can lead to market failure. This impact factor is the expected policyholders of the insurer solvency shortfall of repudiation of catastrophe occurs, thisphenomenon is not uncommon in practice. Analysis of game theory methods in thischapter also apply, use of this method by extending insurance subject to thedemand-side research.During static analysis in chapter III on the basis of, during the fourth chapterusing the dynamic analysis, using the Bellman equation, discussed the effects of thetwo important factors that affect the insured path, a liquidity constraint, that is,income, and is worried about the breach of policy holders. Worried about the breachof policy holders are also systemic decisions of catastrophe losses. By Bellmanequation analysis of cross section and sufficiency of the condition and found thatpolicyholders under liquidity constraints and concerns about policy holders defaulted,purchase is not a qualified insurance is optimal, but with the constraint of enhanced,sum insured is reduced, that decline in demand for catastrophe insurance. On thisbasis, this article proposes a new payment method, after the payment, this can relaxliquidity constraints and fears of a default of the insurer of the insured, and studies have shown that this method can improve the catastrophe insurance needs. But newproblems such as the default policy holders and insurance interests, need to beconcerned about. Article also discusses revenue in absolute terms and prices ofcatastrophe insurance, two in the literature is considered the most important factorsfor the qualitative analysis.The fifth chapter analyses the policy holders tend to overestimate lowprobability events and ignored the influence of subjective factors on the demand forcatastrophe insurance, method is to prospect theory. According to different referencepoints of policy holders set, using value function in prospect theory to study theinsured purchase behavior changes, found that policyholders misjudge severe effectson the low-probability events of catastrophe insurance purchase. But after buying orforcing out catastrophe insurance policy holders, the independence needs areincreased.In the sixth chapter discuss catastrophe insurance system affect the Governmentof one of the largest main impact on catastrophe insurance needs. Using a graphicalanalysis, article analysis of the Government relief on extrusion effect of catastropheinsurance needs. On this basis, building theoretical models discussed in the two areasof government intervention affecting the manner and to the extent of the demand forcatastrophe insurance. Studies have found that government intervention in themarket to improve the solvency of the insurer or reduce the probability ofbankruptcy of the insurer, and increased insurance rates can increase the insuredcatastrophe insurance of independent demand.In the first six chapters on the basis of the seventh, focusing, respectivelyanalysis of typhoons, floods, earthquakes, and other effects of three kinds of typicaldemand for catastrophe. Typhoon and flood our panel data, are explanatory variablesinto economic variables (including GDP, housing values of rural residents), disasterlosses, residents ’ attitude towards risk, the average size of households, governmentspending for disaster relief. Yearbook of the explanatory variables in the Chinainsurance enterprise in casualty, agriculture and insurance and other insurancepremiums. Risk analysis revealed two typhoons and floods, disaster losses and premiums are related, and Government disaster relief payments and premiumreceipts, which further explains the Government relief on extrusion effect ofcatastrophe insurance needs. But also note, our residents ’ dependence ongovernment strong. Other explanatory variables explain high level, may beassociated with the data source. Background risk analysis method for seismicanalysis, results showed that earthquake occurred in Wenchuan has not causedabnormal growth in premium income, combined with the airlines after an aviationaccident insurance stock, supply enough description of earthquake insurance inChina, may also be residents for catastrophic natural disasters in our country’sdependence on Government is so strong that no consciousness and habit of usingmarket mechanisms.The eighth chapters we have designed an experiment on risk attitudes, usingexperimental method to measure people’s purchase of flood insurance, selectstudents as study abroad Foundation of experimental objects. Experimentalprogramme was conducted in a Taiwan scholar research on Taiwan experimentscheme of flood insurance requirement, but the purchase mechanism has beenimproved. But is the cost constraints of insufficient, experiments do not use paid,may have an impact on the results.Nineth combining full-text theory and empirical findings of catastropheinsurance system design was made three suggestions: first, according to China’snational conditions, importance to the fundamental role of disaster relief system, andform an effective complementarity of catastrophe insurance, reducing the extrusioneffect. Second is to have full use of the existing insurance terms insuranceresponsible for floods, typhoons, earthquakes through the additional terms shall be inthe form of underwriting. Catastrophe insurance system should be taken into accountin the design of these factors, avoidance of vibrations in the insurance industry, butalso to design a basic catastrophe insurance products to meet needs at different levels.Third, increase the rate of insurance of catastrophe insurance, mainly throughfinancial subsidies for leverage, coercive or half-form of compulsory insurance aswell as strengthen the publicity on catastrophe insurance. The research goals more specific, that is, from the theoretical and empiricalaspects of catastrophe insurance needs to be a systematic in-depth study and research.On the theoretical research, this article at home, a system using game theory, rely ontools such as Berman and utility function equation to model the effect of catastropheinsurance needs analysis. And the empirical research is trying to make the Panelanalysis, because there is no dedicated data flood, Typhoon and earthquake insurance,limited empirical findings of universality. The use of experimental methods formeasurement of catastrophe insurance purchases at home for the first application.But because of the domestic demand for catastrophe insurance study less, andspecifically for study on catastrophe insurance demand in China is almost blank,because this data in empirical research, theoretical model’s applicability in China andalso there is a big shortage.