Reinsurance Innovation And Its Supervision

Reinsurance is the insurance of insurance.As a way of transferring risks for the second time,reinsurance is meaningful for the safety and efficiency of a country's insurance system.From materialistic points,the emergency of reinsurance innovation is the definite result of many factors instead of an accidental phenomenon.Based on the Economic theory,Finance innovation theory,Risk management theory and Reinsurance theory,this dissertation analyzes reinsurance innovation.The techniques and methods in this dissertation consist of demonstration analysis in combination with standardizing analysis,theory in combination with practice. Starting from defining reinsurance innovation,this dissertation analyzes the difference and connection between traditional reinsurance and innovated reinsurance, and also analyzes the environment and factors that motivate the innovation of reinsurance.Then,this dissertation does researches on the lag of supervision caused by reinsurance innovation and the interrelation between reinsurance innovation and supervision.Finally,this dissertation emphasizes on two kinds of reinsurance innovation,which are financial reinsurance and securitization.Meanwhile,this dissertation combines the conclusion with the practice in China,analyzes the optimal mode of reinsurance innovation for China to import,and does researches on the preparation work that should be done at the supervision level.The dissertation is divided into eight chapters.Chapter one introduces the motivation to the subject of reinsurance innovation, and it outlines the main ideas of the research.This chapter summarizes comprehensively the research literature in relation to reinsurance innovation,the research framework of the dissertation,the innovation and the shortage of the dissertation.Chapter two introduces the basic theory of reinsurance and reinsurance innovation.This chapter defines the concept of reinsurance innovation,analyzes several types of reinsurance innovation,and concludes its significance.Moreover,this chapter compares traditional reinsurance and innovated reinsurance from the point of pricing,which shows the difference between them clearly.Chapter three does theoretic analysis and practical analysis on reinsurance innovation more deeply.First,this chapter introduces the theoretic foundation of reinsurance innovation.Then,this chapter does research on the environment and the driving forces of reinsurance innovation,the development and the trend of international reinsurance market.At last,this chapter discusses the reinsurance innovation in China,analyzes the existing problems and methods of solving the problems.Chapter four introduces a common type of innovated reinsurance which is financial reinsurance.This chapter analyzes the character of fmancial reinsurance,the difference between financial reinsurance and traditional reinsurance,the advantages and disadvantages of financial reinsurance,and the development of financial reinsurance in international markets.Finally,this chapter analyzes the development of financial reinsurance in China and gives some recommendations.Chapter five introduces another common type of innovated reinsurance which is securitization.After defining the concept of securitization and discussing the advantages and disadvantages of securitization,this chapter analyzes the operation mode of securitization and also gives recommendations on the development of securitization in China.Chapter six puts emphasis on the interrelation between reinsurance innovation and supervision.At first,this chapter reviews the basic theory of the reinsurance supervision,outlines the reasons supporting for supervision on reinsurance and the reasons supporting for non-supervision on reinsurance,and analyzes the interrelation between reinsurance innovation and supervision.Then,this chapter does research on the practice of the reinsurance supervision in China.At last,by analyzing the operation of supervision on reinsurance innovation,this chapter concludes the aim, the principle,the methods,the extent and the international cooperation of the supervision on reinsurance innovation.Chapter seven provides an analysis to the supervision of financial reinsurance and securitization.This chapter consists two parts:the first part analyzes the supervision of financial reinsurance;the second part analyzes the supervision of securitization.Chapter eighth presents a summary of this dissertation.It outlines some important conclusions during the period of research,and it brings forward some viewpoints and suggestions.After the research,the following conclusions are obtained in this dissertation. Firstly,innovated reinsurance is an important tool for insurance company's risk management;accelerating reinsurance innovation is an important way to increase the supply of the reinsurance market in China.Secondly,the interrelation between reinsurance innovation and supervision is a kind of unity of opposites.It is necessary to supervise the innovation of reinsurance.The supervision of reinsurance innovation is a systematic project,which requires adjusting the supervision mechanism continuously.Two points are important:keeping reasonable supervision extent and enhancing international cooperation.Thirdly,financial reinsurance emphasizes on transferring insurance company's financial risks.As a tool to release surplus,arrange tax and make strategic business plan,it is an efficient method of transferring risks. The key point of financial reinsurance supervision is how to make sure that it is used in a proper way.Currently,supervision is the key factor that constrains the development of financial reinsurance in China.Fourthly,securitization can transfer the insurance risks to capital market.So it is powerful and meaningful in transferring risks efficiently.On the supervision aspect,the experience of America and the practice of NAIC should be learnt.It is important to strengthen the supervision of SPRV and the safety of capital.