Applied Research Of Option To Insurance Of Our Country

Under the background of gleichschaltung and liberalization of global economy, in the current insurance, from organization to profession of operation, from asset-using to management, all sides go through deeply innovation and change. As insurance innovation,insurance-option is using option-skill to insurance, is a effective measure to degenerate adverse factor in insurance company. Modern insurance applies option technology to breakthrough basic function of traditional insurance, which makes funds permeate through insurance market to capital market, which transfer insurance risk to solid strength capital market., which relieve the difficult of insurance capacity and compensate capability. Insurance business in our country is increasing rapidly and whole strength is increasing obviously. However, weak of operated risk, insurer participating in capital market, frequently tremendous taking pressure ,insurance securitization, all of which is direct power of option-applied in insurance.This paper uses quantitative and qualitative methods, to expound insurance current situation, firstly, to analyze option intervening in insurance is certain, to analyze formation of insurance and how to control and how to use option to achieve circumvention of risks. Secondly, on macroscopy, to analyze option application in insurance from different angles; in itself, insurance policy has option nature; in products, different products have different option nature; in product-priced, to analyze premium and option- money is equivalence and use B-S and Binary-tree models to measure premium; in funds investment, option affects investment decision-making. Thirdly, on microcosmic, as catastrophe case, to show catastrophe case is scattered in option, to expound frequent of natural disaster in our country, to build earthquake scourge risk model, to fit loss limit and frequency , based on reliability-theory, to predict coming loss for catastrophe index ,to simulate operation of catastrophe option. Finally, analyze to develop perspective of insurance option and required measures.