Study On Legal Regulation For Equal Competition Of Insurance Industry

Actually insurance industry is a competitive industry, in which the law encourages insurance companies gain ecnomic interest and maintain normal economic order by equal competition. Given the particularity of insurance industry, it is essential to develop scale economy, protecting public interests and national economic safety. But this kind of scale economy, including the monopoly resulted by it, is all from competition system. In the competition of insurance industry, some companies achieve the advantage gradually, dominate the market, and finally actualize monopoly. This kind of ecnomic monopoly is the main object of anti-monopoly law as well as other illegal monopoly. When it comes to monopoly, it is necessary to distinguish the variety of monopoly in the insurance industry. The ecnomic actions which are implemented to achieve monopoly and restrict the normal competition will be controlled and punished by correlative laws. For regulating these illegal actions, government should intensify the measures and policies to supervise the whole industry. But today there are no laws having definite clauses about how to distribute and adjust the function of anti-monopoly between the anti-monopoly administration and insurance regulatory commission. So we need to demonstrate this problem in theory. Usually the monopoly actions refer to monopoly contract, abusing monopoly power and mergence of companies, all of which should be supervised by anti-monopoly administration. According to current laws, actions to restrict competition should be punished by legal proceedings and legal meatures. Every specific responsibility depends on the character of monopoly actions and actual damage. In a word, establishing competition system and appropriate supervision system is the most effective way of enhancing benefits of the whole insurance industry and protecting the interests of consumers.