Proceedings of the 11th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2024)

<Previous Article In Volume
Next Article In Volume>

Analysis of the Relationship Between Extreme Weather Disasters and Property Insurance Solvency Under Global Climate Change

Authors
Xinyue Li1, Chengyi Pu1, *
1School of Insurance, Central University of Finance and Economics, China Institute for Actuarial Science, Beijing, China
*Corresponding author. Email: Pucy@cufe.edu.cn
Corresponding Author
Chengyi Pu
Available Online 4 January 2026.
DOI
10.2991/978-94-6463-946-9_17How to use a DOI?
Keywords
Extreme Weather; Loss Ratio Volatility; Solvency
Abstract

Frequent extreme weather events have caused substantial loss of life and property. The causal relationship between ‘’extreme weather risk – catastrophic loss – high claim ratio – insurer solvency’’ has become a critical focus in the analysis of the financial vulnerability of insurance companies. However, there is a lack of research literature on the relation among extreme weather risk, catastrophic loss and insurer solvency, with most studies being quantitative analyses of pairwise relationships, and few exploring the mechanisms among all three factors. This paper focuses on the relationship between extreme weather disasters and property insurance claim ratios. Using 10 years of meteorological data and claim data from property insurance companies (2012–2021) across 30 provinces in China, the study constructs indices for three types of extreme weather—high temperature, low temperature, and heavy precipitation—along with the associated claim ratios, volatility, and a panel regression model of mediation effects. The analysis reveals a positive correlation between extreme weather disasters and property insurance claim ratios. Additionally, over 3-year and 5-year windows, the three extreme weather indices significantly increase claim ratios, leading to a complete or partial mediation effects on the solvency of property insurance companies.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 11th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
4 January 2026
ISBN
978-94-6463-946-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-946-9_17How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Xinyue Li
AU  - Chengyi Pu
PY  - 2026
DA  - 2026/01/04
TI  - Analysis of the Relationship Between Extreme Weather Disasters and Property Insurance Solvency Under Global Climate Change
BT  - Proceedings of the 11th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2024)
PB  - Atlantis Press
SP  - 131
EP  - 141
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-946-9_17
DO  - 10.2991/978-94-6463-946-9_17
ID  - Li2026
ER  -