Asymmetric Information Of China's Insurance Market

China's insurance market has been developing rapidly during the recent years. At the same time, adverse selection and moral hazard caused by asymmetric information have become big problems. Adverse selection and moral hazard reduce the insurability of risk, so the insurance mechanism losts its effect of risk control.This paper is based on the asymmetric information theory. At first, it puts forth the phenomenon, causes and aftereffects of adverse selection and moral hazard. After that, it builds up the models to solve the asymmetric information problem. At the end, it brings forward some idiographic and feasible policies.This paper is expected to be a reference of academic research and practical implements, and do some good for the development of China's insurance industry.