Study On Optimization Of Catastrophe Risk Management Mechanism In China

Natural disasters in China have gradually evolved into serious economic and social problems and seriously affected the development of the country.Since the Third Plenary Session of the 18 th Party's Congress,CPC Central Committee also put forward higher requirements on catastrophe prevention and reduction.Catastrophe risks and their management has thus become part of a great concern of the national government and academia in the risky social environment.Catastrophe risk management mechanism is an integration of the system,methods and processes,which combines the strength of the community and the decentralized funds on the basis of comprehensive,dynamic and systematic analysis and the leadership of the government.A complete catastrophe risk management mechanism should include risk identification mechanism,risk coordination mechanism and risk compensation mechanism,or in other words,an early warning mechanism,a management mechanism and financing mechanism.The catastrophe risk management framework and catastrophe risk financing are the core parts if we do not take information technology into consideration.As core parts of catastrophe risk management mechanism,this thesis selects catastrophe risk management framework and catastrophe risk financing as the research objects.Firstly,it clarifies the situation and problems of the current catastrophe risk management and financing mechanism,and then discusses the catastrophe risk management models and financing mechanisms of different countries and regions,with an analysis on catastrophe risk management mechanism optimization process and some policy recommendations.Based on the current problems and policy recommendations,the thesis uses evolutionary game methods to analyze the dynamic strategy of principle parts in the catastrophe risk mechanism.Then,come to a conclusion that only when the government takes stimulate solutions such as premium subsidies and tax breaks can both the risk bearer and the insurance company game to achieve the optimal and minimize the loss.Following that,in the perspective of risk levels and financing cost,based on the circumstances of China,the thesis studies the government's financing strategy,using the multiples and come to a conclusion that with the growth of risk level,the government can take savings,direct loans and contingent loans,insurance and reinsurance,and insurance linked securities to finance the loss.Furthermore,the government can generate strategies according to different internal rate of return,interest rates,contingent credit multiple and reinsurance multiple for fixed risk level.Finally,suggestions are proposed as to optimize the catastrophe risk management mechanism: optimizing catastrophe risk management model to enhance synergies effect among organizations;improving the level of funding support;developing the market financing channels and encouraging financial innovation.The thesis considers catastrophe risk as general finance and economy paradigm,thus trying to find an optimum way to improve catastrophe risk management mechanism from the view of evolutionary game,the view of risk level and the view of cost analysis.Furthermore,it provides advice for government and relevant departments to improve themselves in multidimensional perspectives,and it will help to enrich catastrophe financing theories and enhance the financing system of catastrophe compensation.