The United States is the world's most populous country to set up the catastrophe insurance project

The United States is the world's most populous country to set up the catastrophe insurance project
The United States is the world's most populous country to set up the catastrophe insurance project, the project involves not only the natural disaster such as earthquakes, floods and hurricanes, but also man-made disasters, such as war, terrorist attack.As a result of the catastrophe risk unpredictability and its huge losses, commercial insurance companies are reluctant to provide safeguard for catastrophe risk.Therefore, the catastrophe insurance programs in the United States is established by government legislation.According to the catastrophe risk insured subject and scope is different, the catastrophe insurance project can be divided into federal catastrophe insurance program and the state catastrophe insurance programs.

Federal catastrophe Insurance Program (a) The National Flood Insurance Program (The National Flood Insurance Program, referred to as NFIP) NFIP was founded in 1968, according to The National Flood Insurance law "set up, it has established The purpose is to provide consumers with affordable Flood Insurance.Management organization for the federal emergency management agency (FEMA) consists of the federal insurance administration (FIA).The program in the community, only fully implementing the floodplain management regulations of the community of homeowners, ability is qualified to buy flood insurance, safeguard the property of the object for households and small businesses.In 1981, the FIA's proposed a plan of commercial insurance company can draw on its advantage of extensive distribution network, sales of flood insurance and a commission, but pay is still borne by NFIP.In general, NFIP enjoy duty-free treatment, funds and pay money from its premium income.But in loss more than the historical average, NFIP shall have the right to the Treasury to limit for interest-bearing loan of $1.5 billion.In addition, if you have more financing need NFIP, will also increase its lending quotas, even with earmarks.

(2) air War risk Insurance plan (The Aviation War - risk Insurance Program, referred to as AWIP) "9 · 11" incident to The Insurance industry has brought The huge impact, The Insurance company pay about $36 billion for its indemnity, also reached tens of billions of dollars of government spending.As a result, less than two weeks after the "9 · 11", the federal aviation administration has developed the plan, directly to the United States airlines because of the war and terrorism cause of third party liability insurance policy.In November 2002, the insurance liability to loss of aircraft and passengers casualty.As of October 2006, AWIP has provided the safeguard for the 75 airlines.AWIP annual premium income of about $160 million, and get the same security in the commercial insurance market need to pay the premium of about $500 million.

(3) The Terrorism Risk Insurance Act (The Terrorism Risk Insurance Act, referred to as TRIA) The bill was introduced in November 2002, mainly for The enterprise property guarantees The Terrorism Risk faced by TRIA is mainly composed of two parts: commercial Insurance company must include The Terrorism Risk Insurance policy;The ministry of finance to provide such insurance policy reinsurance.State of catastrophe insurance project (a) The California Earthquake insurance system in 1994, Northridge (of Northridge Earthquake caused serious damage to The California insurance, in The second year of The California government set up The California Earthquake insurance legislation (The California Earthquake Authority, referred to as CEA).The agency by the California's property insurance company as a member volunteered to join and become, at least 70% of the property insurance company to join legislation to conduct business.Then, in 1996 the CEA to conduct business.The CEA enjoy duty-free treatment, can extract pre-tax catastrophe reserves.CEA by members guarantees for residential, apartment, etc, but the subject-matter insured, not including swimming pool, garage, etc.The house property limited
Living costs $5000, emergency limit of $1500, with 15% franchise.Earthquake disaster compensation fund from capital, premium income, member of the apportionment of insurance company, loans, reinsurance and the composition of investment income.(2) of the Florida hurricane catastrophe insurance system of catastrophe insurance system in Florida is very rich, the government at the same time to participate in the insurance and reinsurance market directly.Florida's Catastrophe Insurance system is mainly composed of two institutions, namely The Florida Hurricane Catastrophe Fund (The Florida Hurricane Catastrophe Fund, referred to as FHCF) and Citizens Property Insurance company (The Citizens Property Insurance Corporation, referred to as CPIC).

1. The Florida hurricane catastrophe fund (FHCF) FHCF by state government was established in November 1993, legislation, mainly to alleviate the crisis caused by the hurricane Andrew to Florida insurance market.FHCF is a Florida catastrophe reinsurance project of the operation of the government the management institution to Florida management committee, the State Board of the Administration of Florida, referred to as SBA), and a tax-exempt status.FHCF regulation Florida's property insurance company must be purchased from its reinsurance, but for the overall risk exposure is less than $10 million of the insurance company not mandate.Commercial insurance company pay FHCF reinsurance rates are usually a quarter - a third of the commercial reinsurance market.FHCF provide excess reinsurance, and specifies three different levels of coverage: 45%, 75%, 90%.FHCF funding sources including insurance premium income, emergency again issued bond income and investment income.Since its inception FHCF, already pay for loss of or damage to property in Florida over billions of dollars in reparations.

2. Citizens property insurance company (CPIC) in 2002, the state government legislation set up citizens property insurance company (CPIC), it is by the Florida storm insurance association (FWUA) associated with residential property in Florida and accident insurance association (JUA) merger.CPIC established purpose, it is to those who can't get protection from business insurance market provide insurance policyholders.So far, CPIC Florida has become the largest property insurance company, its market share accounted for about a third of Florida property insurance market.CPIC consists of three different kinds of Accounts: high-risk Accounts (High Risk Accounts, HRA);Personal Line account (Personal Line Accounts, PLA);Business Line account (ltd. Line Accounts, or CLA).By 2007, CPIC the total assets of $3.7 billion, the policy number is 1.4 million, exposure to $500 billion.Catastrophe Insurance programs in addition to the above mentioned, the other states also set up the catastrophe Insurance programs, such as Hawaii Hurricane Relief Fund (Hawaii Hurricane Relief Fund, referred to as HHRF) and Texas storm Insurance organizations (Texas Windstorm Insurance Association, referred to as TWIA).These catastrophe insurance programs for America's economic development and social stability plays a very important role.