The Study On The Legal Issues Relating To Insurance Supervision Against An International Context

The insurance industry plays a key role in the economy and social development and constitutes one of the three pillars of the finance industry, the other two being banking and securities. With the advent of the new century, the overwhelming wave of economic integration, while bringing the new chance for the insurance industry, poses a tough challenge to the supervision agency. The globalization of world economy brings along the increasingly internationalized risks, yet the traditional supervision model which aims at regulating insurance in a domestic context, can not meet the challenge effectively so as to provide a proper legal environment for the sustained and healthy development of the industry, and thus it unfortunately constitutes the legal barrier to the direct investment and multinational operation. In consideration of the above, the close cooperation between various supervision agencies should be encouraged so as to form a global framework for the proper regulation of the insurance industry. An effective, orderly and healthy supervision framework is of particular interest to China as she has already opened its domestic insurance market according to the commitment made when entering WTO and more foreign insurers are expected to flood in, which will certainly put more pressure on the supervision agency. This thesis, starting with the fundamentals of insurance supervision and by way of a thorough analysis of the latest development in the area of insurance supervision, attempts to put forward some suggestions on improving the current supervision framework in China.This thesis consists of five chapters. Chapter â…  briefly reviews the concept, values, basic models and principles of insurance supervision and then explains the effects of an internationalized market on insurance supervision. Chapter â…¡ describes the supervision agencies and those subject to insurance supervision. Also in the chapter is the analysis of the cooperation between various agencies and the information exchange mechanism. Chapter â…¢ probes the contents of insurance supervision and concentrates on market access, operation, financial status and insolvency. Chapter â…£ explores the current trends of international insurance supervision, i.e., the deregulation of insurance industry, theemphasis on the legal effects of MA operation in the financial industry on insurance supervision, the focus on the online insurance and the strengthening of international cooperation between various supervision agencies. Chapter V examines the drawbacks in the current supervision scheme and develops certain suggestions on the improvement of the current supervision framework in China.