Study on the fire insurance spending rate based on the fire accident hazard tree analysis

The paper is inclined to present our model on the fire de- velopment process and the corresponding measures to be taken to pre- vent fire disasters based on the fire accident hazard tree.Theoretically speaking,fire insurance spending rate should be counted on the ini- tial probability theory according to the influential factors of the fire ac- cidents.Based on the fire prevention and control measures,fire de- velopment process can be divided into five stages.Moreover,years' fire prevention statistical data help us to estimate the various stages of the fire burning areas.All the above fire event hazards' influential factors push us to use the probability event tree for calculating such events.In addition,referring to the Statistic Method for the Fire Di- rect Property Loss (GA 185—1998),we have evaluated various stages of the fire property loss by using the comprehensively quantita- tive event tree while trying to quantify the fire risk loss.The fire in- surance premium rate model initiated by us has been built based on the Event Tree's quantitative probability theory.It can help us to an- alyze the fire event spreading process as well as directly calculate the subjects of fire insurance rate and premiums.For its obvious advan- tages,the model has been used to calculate fire insurance premiums in a shopping mall.When it is used,the fire risk factors may include the architectural design,fire-fighting facilities and the fire-fighting management,all of which may directly influence the fire insurance premiums.The results of the fire insurance premium calculation done by using this model prove to be well in accord with the actual fire risk of Insurance targets.Thus,the model can be used to guide the fire insurance rate-making by insurance companies.