Japan's strong earthquake shocks international reinsurance industry

Although the Japanese earthquake did not affect China's domestic insurance industry, but help to improve our domestic insurance awareness.　　The market point of view, in the light of international experience, the public's sense of crisis and awareness of insurance will be greatly increased, the rate will increase. Earthquake is a catastrophe insurance, the general insurance company will pass the way of reinsurance, the risk of the retention of the above transferred to the reinsurance company, so the catastrophe occurred when the biggest loss is the reinsurance company, not the direct insurance company. After the earthquake in Japan, Munich reinsurance, Swiss reinsurance, Germany Hanover reinsurance stock prices have plunged.　　Ping An securities analysts believe that after the earthquake, catastrophe insurance reinsurance rate will be slightly improved, but the performance of the domestic insurance companies are very slight impact. Analysis of insurance contracts can be found that life insurance policy contains earthquake death responsibility, but through reinsurance will transfer risk. In current life insurance policy terms, earthquakes fall within the scope of liability compensation, only war, nuclear explosions, etc. But Ping an securities believe that insurance companies will generally pass to the reinsurance company to buy catastrophe insurance, the risk of catastrophe to the reinsurance company.　　The insurance company will set a retention amount, the amount of which is paid by the insurance company, and the part of the retention amount is paid by the reinsurance company. But for the insured car insurance, earthquake is the scope of liability exemption, property insurance only enterprise property risk and construction insurance by earthquake disaster. Ping An securities analysis that the current occupation of insurance companies more than 70% of the income of insurance, is not included in the earthquake responsibility, that is, the earthquake belongs to the scope of liability exemption of vehicle damage.　　China's current property insurance, only part of the Enterprise property insurance and construction insurance including earthquake responsibility, and this part of the responsibility also through the purchase of reinsurance, the majority of risks transferred to reinsurance companies. Ping An securities that high rates, low incidence of catastrophe insurance coverage rate is very low. The catastrophe insurance price is far higher than the ordinary insurance product, surpasses the populace to pay the ability or the willingness to pay, moreover its occurrence probability is also low, therefore most domestic customer all chooses "the risk from the shoulder". For example, Wenchuan the earth Epicenter insurance compensation of 1.8 billion yuan, accounting for only 845 billion yuan economic losses of 0.2%, and this 1.8 billion yuan compensation, a large part of the reinsurance company to pay.