Pricing Method and Strategy of Catastrophe Insurance Securitization in China

As a result of integrative development of finance and insurance, it would breakthrough the traditional risk management method with traditional insurance by catastrophe insurance securitization, which could not only extend the committal ability of the insurance industry, but also alleviate national public finance burden. Firstly characteristics of natural disaster and catastrophe insurance system are analyzed in China, and the practical strategy of catastrophe insurance securitization should be carried out through referring international experience according to Chinese current situation. Connotation of catastrophe insurance securitization and its products are described, it is pointed out that catastrophe bonds should be fallen to development in the first place, and then operation mechanism and developing mode of catastrophe bonds dominated by government are put forward. At the same time combining analyzing the theoretical pricing principle and model of catastrophe bonds, an effective pricing method under multifactor influence is brought up, thus will benefit the catastrophe risk insurance system.