Study On Corporate Governance Of Chinese Insurance Industry

Practise of corporate governance has been thriving since last years of 20th century. The study on theory of corporate governance is also experiencing refreshment all the time. Insurance industry of China has experienced revolutions in all levels including markets as well as enterprises since the new century come. Among them, the training and directing of corporate governance have become the most popular topic since 2004. Undoubtly, most of the studies make bold plan and design on location, model even structure of corporate governance of Chinese insurers, this is a great contribution to the practise and study of insurer's corporate governance. Unfortuanately, they seldom touched the nature of insurers and insurance industry, which I believe to be the origin of corporate governance. They fallen into a"practisism"trent of transplant the generally accepted corporate governance principle into insurance business. Then, a unavoidable thing is to make some fix or complementation to the transplant.The author believe that most of the studies in insurance industry emphasis more on the"usage"of coporate governance but overlook it's"nature"; take more notice on the"body"of corporate governance but overlook it's"spirit".Based on the understanding, the author believes that corporate governance is not a formula structure nor a stubborn organization, the origination/development has profound economic reason. Insurance company has quite different organization structure, operation model, profit style and capital structure compare with traditional industries. That decide we cannot use the same governance theory in insurance industry.There's some basic problems when use the general corporate governance theory in insurance industry:About the nature of insurance organization. NIE says business is a nexus of power, a team contract, in which the authority takes place of market in order to decrease dealing fee drastically. Contractual nature of Insurance organization has decisive compact on corporate governance of insurance company. But the nature/feature and the effectiveness of the contract has on governance has not been in the scope of theory study.Capital structure is the core factor which make insurance distinguishes from others. There are many theories founded from this point. I try to discuss the specialty of insurance governance based on this point, try to construct a whole complete corporate governance system of insurance industry, and give out new interpretation about the above debates.Interest orientation. Share-holder-centralism is by far the most popular interest orientation of corporate governance. It faced fiercely shocks since Blare proposed the stake-holder orientation. Then, which one should insurers choose? Even though stake-holder orientation is generally accepted by insurance supervisors of the main economies, I don't think this is the most reasonable choice.Focusing on the above topics, the obvious goal of the thesis is to explain"Why"the insurance company has different governance system, instead of explaining"what"the insurance company governance should be.The main structure and contents is like the following:Chapter 1 is direction. I discuss the reason I choose this topic, the meaning of this topic, the contents and method of the thesis.Chapter 2 is some convey of past study related to this topic. Including corporate governance, capital structure and the relationship between this tow parts.Chapter 3 is the theory structure of this thesis. It makes framework of this study from capital structure.Chapter 4 study the capital nature of insurance company and the capital governance of insurance company.Chapter 5 is the study of ESOP(Employee stock ownership plan) in insurance company.Chapter 6 study the specialties of debt in insurance company, as well as the debt governance of insurance company.Chapter 7 mainly makes study on the insurance guaranty fund and it's related effects on corporate governance of insurance company.In Chapter 8, author study the insurance supervision's governance meaning as a compound effect of capital, debt and human resource. Chapter 9 tries to suppose some suggestions on the corporate governance of insurance company of china based on the above complete system of insurance corporate governance theory.