Reseach On Finacing System For Catastrophe Risk In China

China’s vast land area,across six temperature zones,special and diverse climate conditions created a unique resource and geographical advantage.However,under the combined influence of global warming and marginal political risks,the occurrence of catastrophe risks in China has increased significantly in recent years.Various catastrophe risks have caused huge negative impact on China’s infrastructure construction,economic and social development.The development of China’s current financing system for catastrophe risks is far from keeping pace with the increasing catastrophe occurrence frequency.The government’s use of financial funds for post-disaster subsidy is the main means to deal with the catastrophe in China,the catastrophe risk financing system,which only relies on the government’s post-disaster subsidy,has put a constant strain on the public finances.Therefore,it is necessary to establish and perfect the catastrophe risk financing system in China.This paper first analyzes the current situation of catastrophe risk financing in China,and then analyzes and compares the current catastrophe risk financing methods at home and abroad,as well as the catastrophe risk financing systems and tools of the United States,the European Union and Mexico.First,the management of the us government’s disaster fund hinders the development of its private catastrophe risk financing.At the same time,under the strict control of various interest rates,insurance companies cannot make full use of capital market tools.The EU is "risk management"oriented,focusing more on the financing of catastrophe risks in the form of public-private partnership,and the coverage of national insurance is determined according to the types of catastrophe risks frequent in the region.The catastrophe risk financing system in Mexico is in the transitional period,which mainly relies on the catastrophe risk fund and the multi-layered disaster prevention and reduction system.Next,this paper uses Fourier series to predict the scale of catastrophe risk financing in China.Based on the statistics of direct economic losses caused by natural disasters in China in the past 18 years,by using the method of least squares and Fourier series,python software was used to simulate the trend of historical data changes,and the economic losses in the next 5 years after the statistics were predicted.Then,this paper puts forward specific suggestions on the construction of China’s catastrophe risk financing system,which is to establish a catastrophe insurance and reinsurance system with regional characteristics,and release financial instruments such as catastrophe bonds and catastrophe futures into the capital market,so as to make full use of the capital market for risk transfer.