The Research On The Establishment Of A Multi-Level Compensation Mechanism For Catastrophic Risk

With the development of economy, the increase of population density and wealth concentration degree, frequent natural or man-made catastrophe has resulted in serious economic losses and casualties to our country. Because the existing compensation mechanism for catastrophic risk in our country is far from perfection, there are many problems which make the government and insurance companies under enormous pressure in financial after catastrophe. It also makes the residents face the dual problems of survival and development, which is a serious threat to China's economy development and social stability. Therefore, it is important to build a compensation mechanism for catastrophic risk which is able to enhance the degree of catastrophic loss and the efficiency in the use of compensation fund, which is also able to alleviate the financial burden and help the disaster victims rebuild their homes to some extent. At the same time, the research also has important theoretical value and practical significance during the building of a harmonious society.First of all, the definition, characteristics and classification of catastrophe and catastrophic risk are put forward on the basis of extensive research on the related literatures to define the object of study. Then the basic theories of compensation for catastrophic risk and the compensation mechanism for catastrophic risk in Western developed countries are introduced. After this, the respective roles of governments, insurance companies, capital markets and social institutions, as the main bodies in the compensation mechanism, are sorted out, in order to establish the basic analytical framework which causes the cooperation between governments and the markets. Then the practical impacts on our country's economy by catastrophic risk are elaborated. After that, current situation, existing problems and related reasons of catastrophic risk compensation mechanism in our country are given a comprehensive analysis through the collection and analysis of data and literature of catastrophe losses and compensation in recent years. Finally, in view of existing problems, conclusion and related policy recommendations in setting up a multi-level compensation mechanism for catastrophic risk of our country are proposed.