Research Of Earthquake Insurance Pricing Model Based On DFA

The earth’s crust is active in recent decades,to research in Earthquake Insurance Pricing is particularly important.At the same time, the Earthquake Insurance as a kind of catastrophe insurance,has become the important means of remedying earthquake economic loss and reducing the national financial burden.The main work of the paper:the early catastrophe insurance,earthquake insurance system and the DFA model are described.The DFA Earthquake Insurance Pricing Model is constructed and the application of the DFA Model is introduced to count the pure premium rate and simulate ruin probability.Firstly,several successful earthquake insurance systems of other foreign countries are introduced to the insurance system of China.And several valuable advice of Earthquake Insurance Model are provided by these cases.Before calculation of the pure insurance premium,the destruction degree of buildings must be divided into several categories.Secondly,the DFA Model framework and several steps of DFA Model are briefly described.Then,based on "randomness","dynamic", combined with the DFA Earthquake Insurance Pricing Model is established:first,the rate is calculated by using Earthquake Insurance Net Rate of Engineering Method.Second,the Earthquake Probability is calculated by using related formulas of Engineering Seismology.Third,the ruin probability of insurance company is simulated by combining with the earthquake losses satisfied the Logarithmic Distribution and earthquake frequency satisfied the Poisson Distribution.Finally,the Earthquake Insurance Pricing Model is verified according to the history of Kun Ming seismic datas.The most reasonable premium paying by insurers is calculated under the condition of no-bankruptcy.And the ruin probabilities of insurance companies are simulated under different initial funds and additional rates.