Catastrophe Insurance Retention Of The Global Pareto Optimal

In this thesis ,the author is looking forward to seeking a transference pattern of catastrophe risk which is good for china. The emphasis is the business distribution between the insurance and reinsurance ,which can make the benefit of the whole economic body best.The logical sequence of the thesis is : catastrophe—risk—catastrophe risk—handling method of catastrophe risk—the current situation of catastrophe risk—states catastrophe insurance—the retention of state catastrophe insurance. According to this logical sequence, the author puts forward some unwell-considered opinion and draws some tentative conclusion:First, citing the ancient Chinese myths, the thesis distinguishes the risk focused by insurance—natural catastrophe and the risk focused by finance—future anticipate. Then the catastrophe risk combines them ,that is the uncertainty of future anticipate which is made by natural catastrophe.Second, the traditional transference pattern of catastrophe risk(insurance and reinsurance) is not against the ART(catastrophe bond, catastrophe option and so on ).There should be a connection of them. The ART should be on the base of the traditional transference pattern of catastrophe risk. Firstly, using the insurance and reinsurance disperse the risk among the individuality or among the area. And then using the catastrophe bond, catastrophe option disperse the time risk in the capital market. This thesis is focus on the former: the traditional transference pattern of catastrophe risk(insurance and reinsurance).Third, the analysis of the current situation of catastrophe risk in developing country and developed country gives a warning of urgency of establishing the catastrophe insurance in China, and at the same time the author consults the analysis to put forward some proposal of catastrophe risk in China. Fourth, the author puts forward the concept of the State Catastrophe Insurance (the pureless commercial catastrophe insurance leading by the state),and suggests the state to establish the State Catastrophe Insurance Fund by the source of the catastrophe lottery ticket or the other method and then set up a special department to operate the fund and settle a claim in the way of a insurance company, meanwhile the department should reinsure their business to the commercial insurance company and the reinsurance company on the base of the Overall Pareto-optimality Plan. We also should develop the ART. According to this, the author puts forward the concrete proposal of forming the State Catastrophe Insurance.Fifth, the author is on the point of state and on the basis of overall economic body profit, and uses the Western Economics thinking method of finding the consumer- Optimality consumption plan and the securities portfolio theory of finding portfolio- Optimality technique to deduce the best retention of insurance company .The author expects that the whole economic body will face the minimum risk in the condition of the fixed income or the maximum income in the condition of the fixed risk. The thesis , standing the new point, puts forward the proposal of method of finding overall retention-optimality for the catastrophe insurance in China.