Catastrophe insurance needs multi-party participation and joint efforts.

Since the beginning of this year, typhoons, floods, storms and other natural disasters have wreaked havoc on many provinces of our country, and the establishment of a catastrophe insurance system is within reach. According to the latest requirements of the executive meeting of the State Council, China's catastrophe insurance relief system will change from the current government's "single-handedness" and "whole-process support" to the establishment of a new disaster relief mechanism with "clear responsibility" and "limited support". In the process of establishing a catastrophe insurance mechanism, no matter the government or the insurance institution, the key is to make concerted efforts.

The establishment of China's catastrophe insurance system is just around the corner, which is a clear signal from the recent executive meeting of the State Council. The meeting proposed to gradually establish a catastrophe insurance system with financial support, with commercial insurance as the platform and multi-level risk sharing as the guarantee. It can be seen that the catastrophe insurance system has been promoted to the strategic height of dispersing natural disaster risks and maintaining economic and social stability.

The majority of farmers will undoubtedly become the largest and most direct beneficiaries of the catastrophe insurance system. Because of its own weakness and the natural particularity of the production process, agricultural production is faced with many natural risks. China is also a country with frequent agricultural disasters, and the ability of farmers to disperse natural risks is very limited. Catastrophe insurance system will enhance the ability of agriculture to resist natural disasters and strengthen the effectiveness of existing agricultural insurance.

The process of establishing a catastrophe insurance mechanism is actually a process of positioning the rights, responsibilities and interests of all parties involved. No matter the government or insurance institutions, the key is to find the right position and make concerted efforts. According to the latest requirements of the executive meeting of the State Council, China's catastrophe insurance relief system will change from the current government's "single-handedness" and "whole-process support" to the establishment of a new disaster relief mechanism with "clear responsibility" and "limited support". As far as the government is concerned, its function will be further integrated with the market.

The mode of operation of the government plus the market has been practiced in areas such as serious illness insurance and old-age insurance, and good results have been achieved in many places. However, the common problem is that the investment of supporting financial funds lags behind or even falls behind in many places, which affects the effect of security, and an important reason is the concept. Insurance is originally an intangible commodity, and most of its functions can be realized only after the occurrence of risks. But many local governments do not have this concept, often heavy compensation, light investment, for fear that insurance companies will make money. However, as a market-oriented operation, if commercial organizations do not make a profit at all, or lose money for a long time, this kind of cooperation can not be sustained. Therefore, the key is to establish a reasonable profit space, such as low-profit capital preservation model, which involves the local government how to determine how to share the risk with commercial insurance companies.

For the government, the most important thing in the process of establishing the catastrophe insurance system is to respect the market rules, establish the spirit of contract and the concept of contract. In addition to financial investment, public resources can also be invested in the form of non-capital. For example, strengthen the education and publicity of people's catastrophe risk awareness, promote the promotion and popularization of catastrophe insurance through certain administrative means; for some financial funds, state-owned assets should be forced to apply for catastrophe insurance and so on.

The insurance industry that undertakes protection should also realize that catastrophe insurance is not only the development and launch of a new product, but also from the perspective of insurance industry as a modern service industry, how to upgrade China's industrial structure and play a decisive role in market allocation of resources. At present, insurers need to solve two key problems: risk control and market development. Insurance institutions as the main body of risk-taking, their own risk management is particularly important, on the one hand, through a variety of technologies, including zoning technology, quota management, etc., to ensure that underwriting risks and cumulative risks are under control; on the other hand, through reinsurance, catastrophe bonds and other technologies, especially through catastrophe over-loss arrangements, to solve the problem of risk dispersion and operational stability. Under this premise, to explore the product innovation, channel innovation, service innovation and business model innovation of catastrophe insurance, in order to reflect and release the risk management capability of the insurance industry at a higher level, and finally promote the healthy development of catastrophe insurance.