Reinsurance Supervision

The development of reinsurance business can be traced back to the middle of 14th century. After that, the trading and organization model of reinsurance become more mature and developed through its unceasing innovation. At present reinsurance market, traditional reinsurance, namely proportional and non-proportional reinsurance, holds a leading status. At the same time, with the continuing development of modern risk management technologies, financial engineering and alternative risk transfer (ART) techniques; the trading model of reinsurance business innovates in a quick step. New-type reinsurance products such as finite risk reinsurance and insurance securitization enrich the dispersible channels of insurance risk and improve the capacity of transferring insurance risk of reinsurance. However, due to the specificity of reinsurance trade object, internationality of trading field and openness of trading activities, the development of reinsurance business and market openness of reinsurance market not only improve the efficiency of insurance market and stabilize insurance operation, but also bring all kinds of trade, operating and market risk. Without an effective management and control of risk, it will result in the reinsurance operation out of control or even collapse of the whole financial market. In order to maintain the smooth development of insurance management, it is very important to develop reinsurance business and strengthen the research of reinsurance risk and surveillance at the same time.Although there is a long history of research on reinsurance at home and abroad, we still have some unexplained and undefined area. For example, the first one is about the definition of reinsurance. What's the reinsurance? What may belong to reinsurance business? Whether the new-type reinsurance really fulfills the function of risk-disperse? How to distinguish a trade between reinsurance business and financial trade? The second one is that we attach importance to the research of new-type reinsurance product, but ignore the research of its potential risk and regulation system. At present, there are many theoretic researches on the new-type reinsurance products, but no trade in our insurance market. In the foreseeable future, new-type reinsurance products will win recognition from insurance corporations and become a main part of reinsurance market. Therefore, based on the principles of "scientific development", when we do the research on the mechanisms of new-type reinsurance products, we should also take the risk control and regulation system into consideration to prepare for the future development. The third one is many country will take different attitudes and methods to reinsurance regulation system at different stage of development. Under this circumstance, how to establish and perfect the reinsurance regulation system in our country to secure the development of our insurance and reinsurance market? How to coordinate the regulation methods and promote the cooperation in different countries? How to play a more impartment role in the process of establishing reinsurance regulation system? These questions have some realistic and academic value, deserve more research and discussion.We wish studying the reinsurance regulation in a bran-new manner. These manners include three aspects. First, this paper is based insurance company management mechanisms and takes the historical development of reinsurance business as a main line to analysis traditional and non-traditional reinsurance business, which is helpful to understand the thread of thought in development and the differences in character and to scientifically define "reinsurance" from the point of trade material ties. Second, we compare the differences between international practices, important items and reinsurance regulation model, explore the efficient allocation in different reinsurance risk-monitoring methods, summarize the effective methods of reinsurance regulation at different stage of development and research the future trend in the development of international reinsurance regulation on the basis of analysis reinsurance trade, enterprise management and the risk of market. The last but not least, this paper combine the development of our reinsurance business and the openness of our market to analyze the feasibility of construction of reinsurance market in shanghai and propose constructive opinion on how to construct reinsurance regulation system with Chinese characters.