| Insurance is a financial transfer mechanism which gives economic safeguards to the consequence of specific risks by collecting risks of the same type and gathering capital to make special funds. Insurance Law of the P.R.C. defines commercial insurance as follows : Insurance so called in this law refers to the commercial assurance behavior that the insured bears the claims of compensation of the insured amount according to the agreed losses of property resulting in occurrence of incidents likely to occur, or bears the claims to pay the insured amount in the event of death, injury and deformity, or sickness of the insured, or that the insured survives to the agreed age or maturity under the contract between the principal and the insurer in which the principal pays the insurance premium to the insured. The primary function of insurance is to scatter disks by gathering capital and making economic compensation.The function of supervision on China's insurance industry was initially conducted by the People's Bank of China. However, all the economic activities used to be make by the state under uniform plans in the plan economy times, and insurance business in China was run in a monopoly way by a single state insurance company, to large extent which is to improve economic growth and is an alternative fiscal form to maintain social stability resulting in a rather low commercialization, hence there was no substantial insurance supervision. In September,1983, Property Insurance Contract Regulation of the P.R.C. was promulgated by the state Council, in which detailed contents of property insurance were specified. This marked the beginning of China's insurance supervision. However, due to the great influence of plan economic regime on insurance industry, supervision played a less important role.In late 1980's, great changes have taken place in China's insurance industry : Insurance subjects increased, the scope gradually expanded, insurance service concepts varied and assurance awareness of the mass tended to be strengthened. Hence came out malignant competition among insurance companies, information cognitive differentiation between insurer and the insured, even irregular market performances such as insurance fraud, a constraint mechanism must be established to resolve the contradiction therein. China's insurance supervision steps into a new stage with insurance supervision being placed in an important role.Since Insurance Supervision Committee of the P.R.C. was founded in Nov,1998, China's insurance supervision started with reorganizing the market order and o lot of work have been done about building of institutions, construction of law and regulations and market supervision. This gradually moves China's insurance industry to a way to normalization and internationalization, which is a base f or China's insurance industry to realize going-on development. However, insurance supervision in China has just begun, establishment of supervision model, supervision system and supervision practice are all in research.. Seen from the supervision effect in recent years many problem on insurance supervision remain to be probed.This paper adopts a research approach combined practice with theory, mainly analyzes advantages and disadvantages of supervision from practice and draws conclusion on its own, Meanwhile due to short history of China's insurance supervision, and having toe refer to supervision experience, this paper also adopts an approach of research of China and foreign countries, analyzing insurance supervision model of western developed countries, summarizing their lessons and experience to offer practical evidence for establishing China's insurance supervision model.This paper explains the importance of insurance industry in economic development after a brief introduction of the development of the world 's and China's insurance industry, then states the necessarines... |
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