A Preliminary Study on Insurability of Natural Disaster Risk

Insurance is one of important financial facilities to raise the recovery ability after natural disasters,but its role is very limited according to the statistical analysis,especially in the developing countries,and the insurance indemnity only accounts for about 3%of the total loss caused by the natural disasters every year.One of he critical reason is that the study on insurability of natural disaster risk lags far behind the insurance industry developments. Therefore this paper stated the facial contradiction and relative uniform existing objectively by way of the analysis of the characteristics in detail of the natural disaster risks and the insurable risks.A notion of insurable natural disaster risks and a theory basis for the solution of natural disaster insurance were raised by the writer,and this paper also pointed out that some factors must be considered when people designed the insurance products for the natural disaster.