Study On The Moderate Regulation Mode Of Chinese Insurance Industry

The forming of a practical and moderate insurance Regulation mode is a milestone on the way of our insurance industry toward being mature and rational. In this Paper, five issues concerning moderate insurance Regulation mode are discussed: General Analysis of Insurance Regulation, Theoretical Foundation for Innovation of Insurance Regulation Mode in China, Evolving Process of Insurance Regulation Mode in China, Investigation about Moderation of Insurance Regulation in China, and Construction of Moderate Insurance Regulation Mode in China.Starting from requirements form study of moderate insurance regulation mode, this Paper first makes general analysis for categories, such as regulation, insurance regulation and insurance regulation mode. Governmental Control means that in the field, where there are incomplete competition and asymmetric information, in order to prevent low efficiency of resources configuration and to ensure the fair utilization of resources, the government or the social public institutions will use legal rights, through authentication and license, to realize regulation and control of activities of enterprises related to such as enter and exit of the market, price, quantity and quality of service, investment and financing and accounting. Generally speaking, theory of regulation has gone through various development procedures of Public Interest Theory, Capture Theory of Regulation, Contestable Market Theory and Incentive Regulation, which form the theoretical foundation for Regulation, De-Regulation and Re-regulation. Basically, Insurance Regulation is an alternate system to make up the failure in insurance market, is the representation of general economical control in this specific field of insurance, and is the compulsory control measure by the state for certain important insurance activity and business, which mainly comprised of Divided Operation, Market Access, Premium and Capital Operation. Insurance regulation makes use of strict and direct control of "make it rigidly uniform", and is the outer compulsory restriction to insurance company. Insurance Regulation Mode is the way of regulation for realizing certain targets of insurance regulation constrained with the existing cost. The initial selection of regulation mode depends on initial target function and the constraint function of insurance regulation. According to different political systems, economic systems, natural environment condition and culture traditions of different countries, function of different governments varies, therefore, insurance regulation modes are different for different governments. And even for one country, there are different requirements for insurance regulation due to different development stages and areas with different economic development levels. That is to say, the strength of insurance regulation shall be adjusted according to condition of insurance industry in specific historic period of a country, shall be adjusted according to competition, transaction condition and industry structure of insurance field. In this Paper, the Insurance Regulation mode does not mean type of insurance regulation mode, but mean detailed modes for each country listed and detailed mode during different periods of a country. In term of evolution of economic theories, there is struggling between Liberalism and State Interventionism all through the history, which is indicated to some extent in the theoretical discussion about insurance regulation. In the beginning of the 20th Century, the wide establishment of insurance regulation was actually the product of the dominant economic theory that claims for State Interventionism. From 1930's to 1970's, State Interventionism was prevailing, when the governmental control for insurance industry is of the strictest. The idea of being against insurance regulation and releasing insurance regulation was the direct reflection of Liberalism thoughts appeared in the late of 1970's. The Public Interest Theory of insurance regulation describes that in a perfect market economy system, as a...