The Institutional Innovation Study On China's Insurance Industry

After China's entry into WTO, international market and domestic market become convergent day by day. So it is impossible to follow original method to study insurance problem of Chinese. Today, globalization is the main trend of world economic development. The main influence of globalization on Chinese insurance is: Foreign insurance resources gradually come into domestic market; Domestic insurance activity will realize internalization; More variabilities will appear in insurance field of China. Meanwhile, the gross domestic product of our country of 2003 has already reached 11,669,400 million Yuan. Deposit remaining of urban inhabitant has exceeded 10,000 billion Yuan. The average GDP has already reached 1090 dollars. But the insurance depth of our country is only 3.33% and the insurance density is only 287.44 Yuan. The development of insurance is complemental with the development of economy. World economy globalization and the quick development of domestic economy require that insurance industry should be adapt to this trend.The main purpose of this paper is to discuss how to develop our insurance industry rapidly under the open background. In the view of institution innovation, the paper points out the problems of institution arrangement faced by insurance industry in the process of sustainable development. In order to achieve the goal, the situation of unbalanced institution must be changed. We must execute institution innovation in property right, management, organization and restriction.Using the method of combining the theory and reality, the paper apply the theory of institution innovation to study the approach for China to develop its insurance. In order to realize the goal of sustainable development, we must implement institution innovation. Institution innovation is the inherent motivity of sustainable development. From the course of institution innovation, we can find that every development step of Chinese insurance cannot do without innovation. Institution innovation is composed of property right institution innovation, organization institution innovation, management institution innovation and restriction institution innovation. Under the open background, institution innovation should mainly embody in such four respects:The core of property right institution innovation is to break the monopoly position of state-run property right and set up modern enterprise system; The main content of management institution innovation is to set up modern company's administration structure; The main task of organization institution innovation is to advance the development of comprehensive management and realize the goal of making insurance industry big and powerful; The main task of restriction institution innovation is to set up appropriate institution arrangement to protect national insurance industry in the course of extending open.The main view and conclusion of this paper can be summarized as follows: To discuss the problems of Chinese insurance, we must envisage the factor of international and domestic economy development. Influenced by this kind of factor Chinese insurance must realize the goal of making itself big and powerful as fast as possible;Sscientific development view of Chinese insurance is the guideline to realize the healthy operating of insurance industry under the new situation. The core of the view is to make insurance industry big and powerful and the basic intension of it is the sustainable development.;The proposition of sustainable development strategy is based on the resource distribution theory of insurance. The inherent motive of sustainable development is institution innovation;Institutiion now executed by Chinese insurance industry is un-proportional. The pattern of institution innovation should be the type of government leading;The emphasis of institution innovation of Chinese insurance should be organization institution innovation and restriction institution innovation. Only through mixed-management in organization arrangement and appropriate protection in regulation can we real...