Research On Fishery Mutual Insurance Operational Performance Evaluation Based On The Regulatory Perspective

The establishment of modern fishery insurance system is of great importance formanaging fishery risk with scientific and effective method, promoting sustainable andstable development of fisheries and maintaining social stability on fishing areas.Fishery mutual insurance associations carry out a new path about non-profit fisheryinsurance by organizing fishermen with mutual assistance mode. Since2007, jointlywith the Ministry of Agriculture, local government and fishery competent authorities,it carry out the experimentation of policy fishery insurance, so the scale and level ofprotection of mutual insurance business has been significantly improved. From March1,2013, the implementation of "Agricultural Insurance Regulations" defines "policy"characteristic of fishery insurance from the level of the legal system, and affirms thelegitimacy of the agricultural mutual insurance organization as an insurance agency,when operates agricultural insurance. Under the basic framework of policyagricultural insurance system designed by "Agricultural insurance regulations", toestablish a nation-wide and industry-wide insurance system which use fishery mutualinsurance association as underwriting entities, we need to based on the complete set oforganization system, scientific management criterion and efficient operation of mutualinsurance organization, give full play to its unique business model and its advantagesas non-profit organizations, which allow them work with government departments toprovide quasi-public goods and participate in social management, and gradually bringfishery mutual insurance business into insurance regulation system, improve themanagement structure，to prevent and mitigate operational risks effectively. Formutual insurance organizations, it is not only a good opportunity, but also a seriouschallenge, considering their short history, weaker strength, imperfection oforganizational hierarchy and operation management system, and particularity inadministrative system. This paper conducts research around operational performance evaluation offishery mutual insurance based on systematically comb, review, and evaluation of theexisting research results, using relevant disciplines like management, economics,statistics, etc.. The work was done as follows.Firstly, it analyzies the characteristics of fishery mutual insurance operation andthe present status of regulation. This article attempts to analyze the operatingcharacteristics about the fishery mutual insurance from these four aspects: businessoperations, governance structure, operational risk and regulation, aimed at rationalunderstanding of the advantages of operation due to the combining of the organizationnature and underwriting pattern, touching on the support policy effects of theoperational performance and dissecting the dilemma about supervision from theperspective of a non-profit organization.Secondly, it discusses the necessity for construction of a regulatory-orientedoperational efficiency evaluation system of fishery mutual insurance. On the one hand,efficiency evaluation can optimize resource allocation to increase the competitivenessabout mutual insurance operations, help further strengthen capacity-building toimprove the social credibility of mutual insurance associations, and ameliorate thecommunication channels of government departments, furthermore it is the need ofsustainable development and strategic management about fishery mutual insurance;on the other hand, the fishery mutual insurance is dropped into regulatory trouble,because of the lack of effectiveness of insurance supervision in China and theinefficiency and gaps of policy-oriented agricultural insurance regulatory. Thus, forachieves a win-win situation about the economic benefit and legality of fishery mutualinsurance operations, we should build up a regulatory-oriented fishery mutualinsurance operational efficiency evaluation system. Only in this way, can we make itsoperation target closer to regulatory objective, compensate the weaknesses inoperation management, make it turn to intensive development mode complying withthe insurance development trend, make it perfect in governance structure andhighlight regulatory features, make the way of regulatory adapted to thecharacteristics of non-profit mutual insurance organization, thus improve theefficiency of regulatory.Thirdly, it use the Balanced Score Card（BSC）approach to build up theregulatorsy-oriented fishery mutual insurance operational efficiency evaluationsystem. It is not only basis on sum up the practical experience of insurance enterprise efficiency evaluation, but also learn from the BSC approach which we often use innon-profit organizations efficiency evaluation, and bring in regulatory dimensions,constructing the BSC model in five dimensions including customer, financial, internalprocesses, internal processes, innovation&growth and supervision. This papermainly gives a connotative definition of each dimension, analyzes the critical factorsof success and mutual causal relationship, designs the corresponding evaluation indexsystem and explain the method of indicator screening and weight setting.Fourthly, the empirical research about fishery mutual insurance efficiencyevaluation. To make an empirical analysis about fishery mutual insurance efficiencyevaluation system in Shandong Province, this paper gathering financial, business andsurvey data which are needed in the calculation and weight assignment about relativeindicator, and using the five dimensions oriented fishery mutual operational efficiencyevaluation system. On the one hand, testing the feasibility and effectiveness ofevaluation methods, on the other hand, reflecting the overall performance of thedevelopment of fishery mutual insurance in Shandong Province. So, foundation canbe find to further improve the operation, management and the level of operationalperformance.Finally, policies and measures to promot the operational performance aboutfishery mutual insurance. Combined with empirical research conclusions, this papergive policies and measures to improve operational performance, and promoting thisimprovement to the level of strategy development and strategic management from thefive dimensions of the BSC model which are regulatory oriented. It will provide areference for the mutual insurance associations and government departments whenthey formulate policies to support fishery insurance.The innovation of this paper is mainly reflected in two aspects: Firstly, the autherconstructs a five dimensions and its index system about fishery mutual insuranceoperational efficiency evaluation including the supervision dimension by the methodof BSC. This method is not only highlights the nonprofit characteristics onorganization’s mission, but also adjust and reduce indicators like solvency, assetclasses, information disclosure and governance structures, according to the realsituation of fisheries mutual insurance business, when the evaluation indicators fromall level were designed. Secondly, from the angle of mutually beneficialnon-profit-organizations, this article try to reveal the features of fishery mutualinsurance operation and the sociality of the operational performance evaluation in order to highlight its role of non-profit-organizations during its participation in socialmanagement, and try to find the way to standardize the operational management,perfect the control structure and enhance the operational performance of the fisherymutual insurance.