Supervision Study On Chinese Life Insurance Market

The establishment of the China Insurance Regulatory Commission in 1998 opened a new situation in Chinese life insurance supervision, it benenift not only the society's safeguard system, but also the nations'economic development. Now, China has initially formed a risk prevention supervision system which includes five lines of defence, taking the internal control as the basis, solvency regulation as the core, on-site inspection as an important means, capital operation as the key factor, Insurance Security Fund as the barrier, but the current means lacks systematic thought, and needs continuously improving and enhancing. Based on the life insurance supervision research achievements at home and abroad, this dissertation analyzed the current problems and put forward the idea of reform in the future, which has an important theoretical value and practical significance. The main contents of it are as follows:First of all, beginning from the connotation and extension of insurance and life insurance, the dissertation introduced the history and the contents change of insurance supervision in Europe, U.S.A and China. Furthermore, the dissertation creatively employed the TFP Malmquist Index methodology to evaluate the dynamic efficiency of the life insurance companies in different periods. Based on the frontier shift theory, the dissertation forwarded the idea that classified the proposed movement of decision making units into four possible changes; and gave the reasons for them respectively. The results showed that Chinese life insurance companies had made great progress in advanced technology and marketing. Although there are still disparities between multinational insurance insurance companies and home ones, the gaps were decreasing.Secondly, the dissertation devoted to the supervision of life insurance operator and market behavior under asymmetric information. The model, in which the risk types of insured are divided into high, medium and low cases, discussed the contract formation under the condition of adverse selection and moral hazard. The results indicated that the adjustment of marketing regulatory policy should pay attention to not only claims management and information disclosure system, but also the consumers'fraud movements and rights awareness.In the Third place, the dissertation focused on the solvency regulation which was the core of the current insurance supervision system. In order to save cost and improve efficiency, the supervision departments should vigorously consolidate the off-site monitoring system, give full play role to the on site monitoring system; implement the designated actuaries system as soon as possible, speed up the regulatory solvency dynamic testing system, establish the conservative asset accreditation system and perfect the liability assessment system. Specialized investment game analysis reached the result that the following measures could effectively reduce the frequency of institutions and their responsible ones'illegal activities: improving auditing technological means, enhancing the quality of inspectors, reducing inspection costs, increasing penalties; and so on.Finally, the dissertation established a dynamic supervision model for operating results under the consideration of inconsistency regulatory policy and asymmetric information. The solution included the corresponding strategies of regulatory authorities and the life insurance companies when the supervision system was fully effective, totally ineffective or at the Nash equilibrium state. The analyzed results revealed that the supervising process was also the process to seek the balance between stability and innovation. The policy makers should pay attention to the scientific nature of the supervision, as well as the good grasp of regulatory standards. Radical or backward measures will hinder the effective operating of life insurance markets and impede innovation process.