A Study On The Development Of Chinese Liability Insurance Market

Today, the development level of liability insurance has become an important symbol used to judge the insurance industry status of one country. As one of the most dynamic and greatest potential for growth in property insurance, liability insurance has permeated all aspects of the society, and plays active and of great importance role in promoting social progress, maintaining social stability, and building a harmonious society. In the insurance industry's booming developmental today, however, liability insurance has lagged behind in our country. So, how to promote the development of liability insurance industry is becoming an important task for insurance industry to study. This paper is commenced the research for the aim which is providing systematical and thorough theory support.Except of the introduction, the thesis in made up of six chapters. Chapterl describes the theory outlined about the liability insurance in the relevant market. Chapter 2 study the development of liability insurance market in United Kingdom, Japan and the United States which represent the development of liability insurance market in the international community in order to facilitate the development of China's insurance market of reference and reference. The third chapter recalls the development process of China's Liability insurance market, analyzing the current situation and the development of our Liability insurance market, and then analysis the result of the direct cause of the status quo and the system defect, providing the basis of reality to the responsibility for China's insurance market development.Chapter 4 is to be aimed at the risk of moral hazard and adverse selection problem in liability insurance market, after the analysis of the causes and manifestations of the moral hazard, it provides some corresponding recommendations to guard against the moral hazard of Chinese liability insurance market; In the adverse selection and the market balanced analysis, it uses the R-S model to introduce the mean - to maintain price in the Bernoulli model and analysis of three separation balance in the circumstances of Bernoulli and four separation balance in a row, then it provides a good reference for the adverse selection and the market balance of Chinese liability insurance market. Chapter 5 has studied on when the insurers are not fully motivated to reduce the risk, which is the appropriate supervision for the liability insurance protection. At the same time, it considers that the effect of the supervision depends to a large extent on the liability insurer's ability to understand the virulence level of the mistake-maker, and so to draw up the premium when the supervision is dealing with the inappropriate role of lead of liability insurance. Chapter 6 have learned from the successful experience of foreign liability insurance, and Combined with the reality of Chinese liability insurance market. Finally on the basis of the former theoretical analysis and research, it provides some countermeasures and suggestions of the development of Chinese liability insurance market.