The Mode Of Compensation For Catastrophe Risk Losses In China

The Mode of Compensation for Catastrophe Risk Losses in ChinaThere are many catastrophe happened in China and cause great losses every year. So our government has to pay a lot to relieve the people in disaster, thus cumber the development of economy; at the same time, the commercial insurance companies which offer catastrophe insurance suffer a lot too, they are unwilling to offer such insurance anymore. So it is necessary to seek a kind of suitable compensation mode for catastrophe risk losses to ease the burden of finance, and promote our life. Systemic research has been done on the mode of compensation for catastrophe risk losses(especially earthquake losses), on the one hand the advanced experience of western countries has been used for reference, on the other hand actual situation of our country has also been considered, and the conclusion is that finance funds should be used according to the principle of insurance, the actual method has been put forward; anymore, due to the limitation of capital and reinsurance market, commercial insurance companies may still can't bear the losses of catastrophe even with the help of finance funds, so it's required to disperse such catastrophe risk in capital market, especially CAT bonds can be used in our country and the mode of emitting CAT bonds also been discussed.