Ratemaking for precipitation insurance－Evidence from the amusement park in Taiwan

• Main Authors: Ynug-Lin Chen, 陳泳霖
• Other Authors: Chwen-Chi Liu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/08570619084396702592

碩士 === 逢甲大學 === 風險管理與保險研究所 === 96 === Weather insurance covers the losses of weather events. As the coverd range is increased gradually, in addition to agribusiness, weather insurance is closely related with other business as well. There are various weather insurance pricing methods. This research uses the simulation method to analyze rainfall distribute situation, establishing precipitation insurance pure premium of insurance valuation model. Our results indicate that the main factors of influence on weather insurance rate are the location of amusement park, the trigger of critical precipitation in contract, the limitation of precipitation in contract and the period of policy. This research finds that the weather insurance premium rate of Taiwan is very high. The insured of amusement park may pay five to ten NT dollars per day for coverage with one hundred. The major reason of high premium rate is because that the climate in Taiwan is moist and it is easy to trigger the perils of insurance contract.