Explore Law Supervision On Insurance Funds

With the development and expansion of the insurance industry, the functions of launching and financing gradually show an unprecedented importance in the use of insurance funds. While improve efficiency of using insurance funds and maximize operating profit, the massive and high-quality insurance funds also contribute to the economy as a whole development and play a good social effect. So it broke the traditional narrow situation which is only emphasizing underwriting, and made investment business and insurance business as the "two wheels" of the insurance industry.However, the Chinese insurance industry started late, the insurance companies are inexperienced in how to use insurance funds, and this has brought Chinese insurance business a risk which should not be ignored. Especially after the accession to WTO, a large number of foreign insurance companies has entered the domestic market, when they brought us advanced the concept of insurance, but also created a huge challenge. Therefore, how to conduct scientific and effective supervision of the using of insurance funds has become a burning question to be solved.Chinese Law of Insurance and other relevant laws and regulations which are on the use of insurance funds have made the regulatory provisions, but in general it's more abstract and rigid, and also lack of operability. Otherwise, with the development of the insurance market, the relevant provision has shown a serious lag. Therefore, this article will analyze issues of the use of insurance funds that emerged in the legal of the insurance market, the relevant provision has shown a serious lag. Therefore, this article will analyze issues of the use of insurance funds that emerged in the legal and regulatory mainly from the legal perspective, and then learn from advanced foreign experience to make some sound recommendations with a view to benefit the research about the legal system of how to use the insurance fund.This article is divided into four parts, and each chapter is as a part:The first part mainly introduces the basic theory of the use of insurance funds and the status quo. The use of insurance funds refers to activities that the insurance companies put the accumulation of a variety of insurance funds into social production process, and preserve and increase the value of the funds. However, the insurance investment business of China started late, there are still some shortcomings now, mainly in the following points:the use of channels for insurance funds should be further widened, irrational structure of insurance and investment, the investment strategy are mostly short-term behavior, and sources of funding do not match, the insurance inefficient capital investment, insurance investment lack of corresponding professionals, the uncultured level of management in the insurance companies, and so on. To solve these problems, the article recommends the following comprehensive measures:while broaden the use of channels for insurance funds, restrict the proportion of investment. According to the different characteristics of life insurance products, we should make the corresponding provisions to use the funds. Developing the derivatives finance markets, developing new investment products, and select the appropriate fund management model. The relevant content of the use of the insurance fund we described before is a prerequisite for the in-depth study the regulation of the legal system, so it is necessary to describe on the first chapter.The second part, I selected several countries which were representative of legal supervision system of the use of insurance funds for specific comparative analysis. For example, the use of funds, regulatory model, specific supervision of the legal system and corresponding features of the United States, Britain, Japan and Singapore. And we mainly compared and reviewed the regulatory regimes and regulatory legal systems. In aspect of the supervision mode, there are compromise the supervisory mode of the three models with different features in today's world. They are loose supervision mode (a high degree of self-discipline of British model), strict supervision model (the dual supervision of the U.S. and Japanese model that administration has a strong color patterns) and compromise supervisory mode. But most of them were used in the insurance market of developed countries. In aspect of supervision of the legal system, most of countries and regions have their own regulation in the mode of the use of insurance funds, and they restrict the proportion of financing and insurance funds used in each of the main subjects, on the maximum possible limits the use of insurance funds to meet the principles of safety, profitability and liquidity. After this horizontal comparison, we will skillfully learn from foreign supervisory experiences and improve the supervision of the legal system, and will not appear inconsistent with the embarrassing situation.The part three through the introduction of the history and current status of legal supervision system of the use of insurance funds. At present, for the management requirements of sub-sector business in the financial institutions, I assume should estate the China Insurance Regulatory Commission which response the supervision and management of the insurance industry, Of course, it is also the regulatory agencies for the use of insurance funds, by providing and supervising the specific investment ratio of insurance funds in each project's. With the newly revised 2009, "Insurance Law" promulgated, the use of insurance funds expand the field of real estate investment indicates, it means that under the premise of security, Chinese insurance funds pay more attention to the improvement of yield, which is also the big changes about the use of insurance funds in the regulatory principles. Of course, the current legal regulation in the use of insurance funds in our country should spend further refinement such as the regulatory system, regulatory tools, internal control system and accountability.The fourth part is the core part of this article. With the financial innovation grogressly, as well as the continued integration of financial services, financial business model gradually excess from sub-industry to over-mixed. Through reflection about the bankruptcy of AIG,we recommend setting up the strict supervision of Mixed Mode which is more suitable for China's current. Namely, on the basis of strict supervision, set up a committee of comprehensive coordination and supervision of financial institutions to coordinate the regulatory disputes between CSRC, CBRC and CIRC. At last we should guarantee the implementation of this model to make it workable in practice from the legal system and institutional settings. On the base, the author put forward the feasibility of the proposed to perfect legal supervision system of the use of insurance funds regulation from the two point of view includes the external government and the internal enterprise, so that the argument will be more comprehensive.Although this article studied a large number of documents and data, and the completion of its creation was based on a number of people's guidance, but there are some innovations:First, we stand on the angle of law and combined with economics, research methods, change the past research ideas which was only from the economic point of view, so that legal theory will keep up with the use of insurance funds. It will make the contributions of regulate the use of insurance funds.Second, in the background of mixed financial industry, the article combined with the international community that already exists on the three kinds of European and American markets mixed sector financial model, and our own national conditions, the author proposes the establishment of an essentially adhere to strict supervision, but substantially it is a financial comprehensive coordination agency monitoring committee. On the one hand different tasks and responsibilities will be allocated to the three oversight bodies in different mixed industry, using their respective expertise to serve a unified regulatory brainstorming. On the other hand, it is responsible for dealing with the regulatory objections or difference which is arising from the new business that because of the mutual integration of CSRC, CBRC and CIRC. So it can be able to avoid the loopholes of the supervision in the original sub-sector. Such a regulatory coordination committee created more flexibility under the strict supervision of original model in the use of insurance funds, it is the product of the combination of the trend of times and Chinese national conditions. Third, the scholars always ignored the illegal use of funds though they pay much attention to the use of insurance funds. There are also some significant loopholes in our existing law. The article has put forward sound proposals such as the followings:correcting the permission within a time limit, reasonably dispose the funds which was illegal used, attributing the responsibility to the relevant personnel.Fourth, because in 2009 the real estate is added to "Insurance Law", the article analyzes the risk that the insurance funds will be used in the field of real estate, and proposes measures to reduce investment risk.As we know, As we know the use of insurance funds are still in the stage of continuous exploration, the legal system of supervision and related studies are still in the process of continuous improvement, I believe that the relevant content we discussed in the paper will lay a solid foundation for the future in-depth study.