Study On Insurance Quality Of Regulation In China

Under the modern social economy, the importance and necessity of insurance regulation has been long interested by the public, but the focusing to the quality regulation happens much later than the pure and primitive interesting.The quality regulation is mainly established upon the design of regulatory structure, the efficiency as well as quality of regulator's effectiveness. Based on this judgment, this dissertation tries to analyze China's insurance regulation system from the view of economics by applying the achievement of law and economic and institutional economics.Firmed upon the various domestic and international archives about the insurance regulation, the author try to explain the necessity, the urgency, the inevitability and the possibility of quality regulation from the point of view of General Public Interest in association with the Market Regulation Failures Theory and the Public Choice Theory. This paper restructures the different views of various regulators like OECD, WBI, IAIS and others specialists about the quality regulation. As a result of above research, this paper tries to expound the trend of quality regulation from the theoretical and practical views.Considering of the fact that the quality regulation has been attached an appropriate importance by various regulators of different country, we could notice that the quality regulation has became practically the heart of the insurance reform across almost all countries, and particularly in the emerging insurance markets. Notwithstanding above statement, the real and effective research to quality regulation is still relatively rare and often absorbed into the practice of improving. Based upon the theoretical research done by international organizations, this paper tries to economically analyze the quality regulation to develop a new vision and an enlarged scope of supervision. To get a more accurate understanding to economical analysis to quality regulation, following notes should be highlighted at the very beginning: the relativity of quality regulation, this could be illustrated by the variety and relativity of the scope of regulation in different countries across the different timing selection, and the scope of regulation could also varies following the external soft environmental changes as well as the different focuses of public even in the same country of the same period; the dynamic of quality regulation, this could be understood as a constant change of the external environment, subject, object, process and result of supervision; the flexibility of mode of regulation, this is resulted from the fact that the different methods and ways employed into regulation could be resulted from the different target and purpose of supervision, and an unified supervision method cannot satisfy the requirement of all regulators of different countries; the improvement of insurance regulation in the whole scale.Based on the above analysis and the achievements of economic laws and institutional economics, this paper try to discuss the ways of improving the insurance regulation from the transition of regulatory institutions, including the historical changes, the impetus and the character of the modifications etc.This analysis opens for us another door to project the possible ways of applicable quality regulation ways, and the measurement and judgment of quality regulation is also been discussed from the different aspects mentioned above. In view of the long history and the relatively well-established insurance regulation system in developed countries, the study on the insurance regulatory reform of above countries would be beneficial in the testing and comparison of the various systems, and as a result to detect and find a more effective and appropriate regulation system, which could be the subject of innovation and optimization to create a system which could respond by a ways more appropriate to our country's need. As a representative of regulated market with a long history, this paper takes the examples of the US, UK and Japan to summarize the similarities and regularities of the insurance regulatory reform to serve as a valuable reference for our country to enhance the quality of insurance regulation. Reconstructing the quality of insurance regulation of our country is the standing point of this paper. Starting from the character and quality of regulation of emerging insurance industry, this paper describes the evolution of reform of the insurance industry of our country, and the insurance regulation quality is also approached from various dimensions including scale of premiums, gross of premiums, contribution to the whole economy and society, and international comparison of insurance density; this paper analyzes also the reason of the poor quality of regulation of the insurance industry of our country, and ends with several proposal to improve the result of regulation quality which could be summarized by following points: Firstly, to be innovative in the insurance regulation mode, and to delineate appropriately the regulation boundary of the government; to improve regulation efficiency and to construct a regulation system which is suitable to a loosened market entry. The purpose is 1) to foster an insurance market where economy of scale and competition coexist and 2) to reinforce the balanced development of insurance industry across the country and encourage the innovation, and 3)to promote the adoption of market principles into the tariff pricing of insurance products, and 4) to construct a whole set of market exit system by standardizing the merging and acquisition of financial institutions and reinforcing of the regulation of improper competition, and the purpose is to construct an information sharing based innovative regulation mode to prompt a capital sufficiency and solvency targeted supervision system; Secondly, to construct micro-level infrastructure which is in favor of improving the quality regulation; Thirdly, to enhance the ability of regulators, including the improvement of the general cooperation ability of regulators, the construction of power balance mechanism and the impetus-restraint mechanism to improve the quality of regulators and so on.The major innovations of this paper include: One, this paper, for the first time in the domestic, systematically generalizes the subject of quality regulation with a summarized theoretical supporting. Most of researches available now on the subject mainly focus on specific policy summarization and concrete evidence analysis, where the normative analysis based on theory level is a rarity; Two, based on quantities of statistical data, and by using the evaluation indicators system of the insurance quality regulation, this paper analyzes the quality regulation to insurance industry of our country both in qualitative and quantitative aspects. And a macro- and micro- level advice is also been suggested to optimize the insurance quality regulation of our country; Three, for countries of emerging insurance markets during the period of transition, this paper highlights the exceptional sensitivity of insurance quality regulation. Considering of the differences existing into the market, legal and juridical environment between emerging and developed markets, and the way to improving the quality regulation, as suggested by this paper, could not be an identical copy of developed markets, but shall be an innovative transplantation and cohabitation with China's particularities, i.e., the balance and coexistence of a policy combined the deregulation and regulation and the specification of the quality regulation, which could be summarized as delineating of the regulation boundary, controlling of the regulation intensity, and improving of the regulation efficiency.