The Pricing of China’s Earthquake Insurance

This article uses earthquake losses between 1961 and 2010 to simulate earthquake loss. Through stochastic simulations based on weibull, we calculate the insurance fees using VaR. Our results indicate that different confidences lead to different fees, the higher the coefficient, the bigger the fees. We also weigh on different risk area and calculate the insurance fees per people, which represent the price of earthquake insurance. The results indicate that price varies greatly due to different risk areas and confidences.