Abstract:

Forest insurance is an essential component of agricultural insurance and a significant branch of green insurance in China.Due to the systemic and unique characteristics of forest insurance,it is closely related to catastrophe risk,with its dispersion mechanism being a key issue in forest risk management.Currently,China primarily relies on three mechanisms to address catastrophe risks in forest insurance:reinsurance,coinsurance bodies,and catastrophe risk reserves.However,there are prevalent issues in practice,such as a lack of catastrophe risk awareness among forest insurance operators and ‘free-riding’ within the coinsurance bodies.By examining the more sophisticated catastrophe risk dispersion systems in the United States and Japan and considering China's national conditions,this study proposes practical recommendations to enhance the catastrophe risk awareness of forest insurance operators and establish effective coinsurance systems.

Key words: forest insurance, catastrophe risk, reinsurance, coinsurance body, catastrophe risk reserve, risk diversification