International Comparison On Exertion Of Insurance Capital & China's Choice

With the development and penetration of Chinese financial reform after the opening-up, the scope of insurance in China has appeared to mount up dramatically, especially during these years. At the same time, more and more people and companies have come to be engaged in this field. Thus, insurance industry in China conies into form primarily. However, companies seem to get into a recurrence with the development: the larger the scale is, the higher the risk goes. The fundamental cause lies in the exertion of capital. On the basis of a comprehensive comparison about the use of capital home and abroad, we come to know that in scale we fall far behind of international insurance companies; in structure, our capital is used on a much more limited scale compared with that of international companies, which have shown a trend of variety and portfolio investment; we get low proceeds, or even an interest rate loss in some life insurance companies, while international companies make high proceeds, which can not only fill up their insurance loss but be a source of their profits; our simplified model of the exertion of capital, still under exploration, can't meet the need of development, while different international companies have different models of exertion, mainly including management, investment branch and consign third-party; furthermore, the exertion can be supervised either freely or strictly. International companies usually define the way and quota of the exertion, while our supervision is obviously unscientific, unfair and too general. Only after an all-around comparison, can we become aware of the importance and the instancy of an perfection of the model of the exertion of capital.Proper channels of the exertion of capital must be explored, the way and quota of the exertion must be nailed down and the model reformed so as to improve the profits in our country. Meanwhile, effective supervision should also be established so that the exertion can be safe. Chinese insurance industry may become more competitive on its way toward a combination of substance compensation, finance and society management as a result of all these measures.