Catastrophe insurance market and cause catastrophic failures of public management model analysis

Catastrophic risk not only of today's human society has caused tremendous threat to commercial insurance companies also made a tremendous challenge. Traditional theory that lead to catastrophic failure of the main reasons the market is asymmetric information, but the essence of its relatively limited impact. Lead to market failures due to the objective of capital market imperfections and lack of liquidity, and the subjective will have to blame the insurance companies and the public's dislike ambiguity over-reaction. Catastrophe risk management needs of government and the active cooperation of commercial insurance companies. The establishment of mechanisms for the protection of our catastrophe responses: Catastrophe Reserve Fund; government to serve as "temporary loans" to provide temporary liquidity; catastrophe of the establishment of security, the formation of industry risk dispersion channels; issued catastrophe bonds, further spread the risks ; Strengthen the system construction, improve the enthusiasm of commercial insurance companies.

Key words: catastrophic risk; market failures; government intervention