Research On Institutional Change And Innovation Of Insurance Companies In China

Chinese insurance is a component part of the socialist market economy.Therationality and innovation of institution design of the insurance company and thecoupling degree of the system structure, affect the health development of insurancecompany and whether to provide high reliability and high quality insurance servicefor financial markets and social stability; and further affect the sustainabledevelopment of the whole national economy.With joint efforts of the government,industry associations and the insurance company, the system construction of Chinainsurance company has made remarkable achivements, performance of theinsurance company improved rapidly, and Chinese insurance market has achievedgreat development. However, Chinese insurance companies still exist manyproblems in the institution fields. The institutional change and innovation are theobstacles,which seriously restricted the change of the mode of economicdevelopment of China insurance companies, and affected its sustainabledevelopment. How to orientate and plan the development of China insurancecompany from the perspective of institutional change and innovation,and how tohelp insurance companies to accelerate transformation of the mode of economicdevelopment, and how to guarantee the essential function of society to achieve itsbigger and stronger and to integrate into the global market, are the major issues inthe financial market at present.So this paper researched the institution change and innovation in China’sinsurance company, which were based on the theory of new institutionaleconomics,insurance and enterprise innovation, and took Chinese insurance company as the research object, and drawed lessons from the insurance status ofwestern developed countries. In the background of speeding up economicdevelopment in the "Twelfth Five Year Plan" period,institution change andinnovation can help to improve the quality and speed of institution innovation,andgive full play to reduce the transaction cost; and can help to realize the optimuminstitution change and promote healthy development by the design of systeminnovation; and help to provide efficient insurance products for the social andeconomic development, and promote the building of a harmonious society from thepractice view. From theory view, institution change and innovation can set up aspecial theory analysis framework and model of China insurance institutional change,and has theoretical significance to guide the future practice of institutionalinnovation of the insurance company, and has theoretical and practical significancefor the effective integration of new institutional economics theory and the insurancetheory.The paper includes7chaptersThe first chapter is an introduction. Firstly, it describes the purpose andsignificance of the topic of this article. Secondly, it is a literature review, whichreviews the existing literature on the Institutional Change and Innovation Researchof insurance company and has laid a more solid foundation for this study literature.Finally, it points out the lack of innovation of this paper.The second chapter is the research on the theoretical basis of insurance institutional change.This part is the theoretical basis of this study. It combs insurance system theory, thetheory of institutional change, property rights theory, transaction cost theory, thetheory of corporate governance and business innovation theory and points out that itis closely related to this study.The third chapter is the theoretical analysis of institutional change of Chineseinsurance companies. First, it analyzes the Chinese insurance company motives of institutional change, and it demonstrates that the institutional imbalance betweensupply and demand is the fundamental driving force of institutional change. Second,it analyzes the manner and process of institutional change of Chinese insurancecompanies. Again, it analyzes the micro and macro performance of InstitutionalChange of Chinese insurance company. Finally, it reveals the logic of InstitutionalChange and institutional innovation of Chinese insurance companies.The fourth chapter is the history and present of Institutional Change of Chineseinsurance companies. First, it is divided the history of institutional change ofChinese insurance companies into before the founding stage, recovery anddevelopment and transformation stage (1949-1958), the stagnation stage(1959-1979), after the reform and opening-recovery stage (1978-1991), a rapidlychanging stage (1992-2001), and WTO after stage (2002-present). It analyzes thecharacteristics and laws of the overall changes of each stage. Second, it analyzes thecurrent status and problems of internal systems of Chinese insurance companiesfrom four aspects of corporate governance structure, human resources management,risk prevention mechanism and system integrity. Finally, it analyzes the currentsituation and problems of external system of Chinese insurance companies. Itincludes lagging legal system, faulty external regulatory agencies, unsound insurancemarkets, missing external informal system.The fifth chapter is the reference and inspiration from foreign insurancecompany system. Four aspects, which include insurance legal system, insurancesupervision mode, insurance supervision content and internal governance system ofinsurance company, were introduced for the foreign insurance company system, anddrawn some beneficial enlightenment to institutional change and innovation ofChinese insurance.The sixth chapter is the design of institution innovation framework of Chineseinsurance company. Institution innovation framework of Chinese insurance company was designed which provided a complete framework for system innovation. Thesystem is divided into the formal and informal system which designed from theinternal aspect and external aspect respectively.The seventh chapter is the countermeasure of institution innovation of Chineseinsurance company. Firstly, the short-term and long-term goal of institutioninnovation of China insurance company was analyzed. Secondly, the way toachieve the target of institution innovation of China insurance company was pointedout in the view of the innovation subject. Finally, some strategy and suggestions onthe institution innovation of China insurance company were put forward, whichincluded the transformation of enterprise development idea, innovation strategy ofCorporate Governance Structure and integrity system, solvency management ofinsurance company and innovation strategy of marketing system, and theinnovation strategy of human resources management system and externalsupervision system.