Analysis of the Liability Insurance for Hazardous Chemicals Safety Market & Suggestions on Its Development Based on AHP

In recent years, explosion accidents caused by dangerous chemicals have occurred frequently in China, which both led to severe casualties and property loss. Hence, all circles in the society start to keep an eye on liability insurance for hazardous chemicals safety at the time. However, this insurance system hasn't been set up nationwide till now and the market of it has not been completed yet. To find out the root causes of the status of immature market, we take insurance companies, policy holders and the government, representatives of society, into consideration and put forward the corresponding measures to promote the insurance. We establish the risk factor index evaluation table through fuzzy synthetic evaluation method and assess the risk level by analytic hierarchy process, to the end the differential rate is adopted according to the risk level. Under the differential rate system, the problem of unreasonable prices of the insurance would be solved. We also make policy recommendations to promote and perfect the the liability insurance for hazardous chemicals safety.