International Conference on Construction and Real Estate Management 2018
Conceptual Proposal and Modeling of a Construction Surety Reinsurance Company with a Quasi-Public Function: Empirical Evidence from China
Publication: ICCREM 2018: Construction Enterprises and Project Management
ABSTRACT
Currently, some developments have been made in Chinese surety area, especially in experimental cities. However, there are still many serious problems in this industry, such as opportunism and frequent bankruptcy of surety companies, which basically result from the lack of supervision and regulation of the construction surety market. At present, there is no clearly designated regulatory authority to govern the construction surety market in China. Based on these reasons, this paper innovatively proposes building a construction surety reinsurance company with a quasi-public function (CSRE) to achieve the governance of CSRE. Then this paper initially gives the definition of CSRE and states that CSRE should be operated under the low-profit mode with public interests. In order to verify the feasibility of its low-profit mode, a mathematical model has been built to analyze the optimal premium that guarantees CSRE’s low-profit operation. Its validity has been proven in terms of the surety industry data in Shenzhen.
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ACKNOWLEDGMENTS
This study is financially supported by the National Natural Science Foundation of China (Project No. 71473145).
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Information & Authors
Information
Published In
ICCREM 2018: Construction Enterprises and Project Management
Pages: 46 - 55
Editors: Yaowu Wang, Professor, Harbin Institute of Technology, Yimin Zhu, Professor, Louisiana State University, Geoffrey Q. P. Shen, Professor, Hong Kong Polytechnic University, and Mohamed Al-Hussein, Professor, University of Alberta
ISBN (Online): 978-0-7844-8175-2
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© 2018 American Society of Civil Engineers.
History
Published online: Aug 8, 2018
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