Applied Research on Capital Asset Pricing Model in Premium Rate Making of Engineering Earthquake Insurance

Insurance market, as an important part of the international financial markets, is playing an important role in current global economic recovery. Insurance is an important way of earthquake disaster crisis handling. However, the existing engineering earthquake premium rate making only concentrates on net premium but measures risk additional charge by experience. As a result, the compensation of risk can´t be reflected in premium, which is the bottleneck of engineering earthquake insurance development. By introducing Capital Asset Pricing Model (CAPM) in financial market to pricing analysis of engineering earthquake insurance, from the perspective of capital market, the application of the model in engineering earthquake insurance pricing is discussed, which makes up for the inherent defect of traditional engineering earthquake premium rate making and makes premium calculation more scientific and reasonable.