Author(s)

Ziyi Yang ¹

Affiliation(s)

¹ School of Geographical Sciences, Qinghai Normal University, Xining, 810000, China

Corresponding Author

Ziyi Yang

ABSTRACT

In this study focused on Yinzhou District, Ningbo City, the determination of typhoon catastrophe insurance rates is explored using a discrete relational, matrixed catastrophe insurance actuarial model. The initial phase involved calculating the expected loss rate for residential typhoon insurance, utilizing historical data on insurance claims and tropical cyclone records. Further, the study integrated Yinzhou District yearbooks with typhoon insurance claim data to assess the vulnerability of individual streets and towns within the district. This assessment led to the creation of four gradient levels based on the vulnerability rankings and clustering. The research then involved calculating both the actual and adjusted risk gradient coefficients for each area within these gradient levels under varying scenarios. Findings indicated a significant disparity in the actual risk gradient coefficients across different areas, with the most vulnerable areas exhibiting coefficients that were 813 times greater than those of the least vulnerable. To address the high actual risk gradient coefficients, the study proposed adjustments that took into account factors such as residential risk, policyholders' payment capacity, and government support. The implementation of these three adjustment schemes significantly reduced the discrepancy in insurance rates among the different areas, more accurately reflecting the typhoon risk situation in Yinzhou District and aiding in the precise determination of catastrophic insurance rates.

KEYWORDS

Typhoon; Catastrophe Insurance; Premium rate determination; Disaster prevention and mitigation

CITE THIS PAPER

Ziyi Yang, Study on the Assessment of Insurance Rates in Response to Typhoon Disasters. Accounting, Auditing and Finance (2023) Vol. 4: 52-65. DOI: http://dx.doi.org/10.23977/accaf.2023.040309.

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