Personal Residential Loan Insurance: Present Condition And Countermeasures

In recent years, the purchase problems are becoming a focus of urban residents gradually, the intense real estate market and the growing rates are becoming the biggest burden of citizens' life. Because of the prices are too high, so the general population in lower income levels must make the deals come true in mortgage housing loans which have higher risk and longer loan period, and need a perfect housing insurance to do make prevention. Thus, the personal residential loan insurance is becoming a strong support for the solution of housing problems of urban residents.But, the personal residential loan insurance in our country started late and developed immature, both in theory and in practice there are many problems to be solved. So, improvement and development of personal residential loan insurance system in China has a strong practical significance.This paper aims to develop the personal residential loan insurance of our country,which is based on the theory research. The structure contains three parts: coming up with and analyzing and solving the problem. At the beginning, this paper elaborating the meanings and the functions of the personal residential loan insurance.This part is pointing out the illogicality of the insurance in order to put matting for the next part. And then the next part introduces the personal residential loan insurance of the USA, Canada, Australia and Japan, in which says if it is have mandatory, the benefits paying and the insurance fee to clarify the rationality of the personal residential loan insurance. After this part, it says the current situation and development potential of the personal residential loan insurance. The important part of this passage is expounding the illogical reasons of compulsion, beneficiary, insurance amount and the paying methods with the analysis of running instance of the personal residential loan insurance and the feedback of the people and the two laws referring to the personal residential loan insurance.In the end, this paper put forwards some proposals which aim at dealing with the problems in personal residential loan insurance in China. These proposals are as following:integrate the institution;enhance the ability of supervision;design new insurance combine with the actual situation in China and advanced experience abroad. On the system level, this paper first recommends integrating laws from feed back of the public, second the paper recommends improving paying system by adjusting premium reasonably, and third the paper recommends regulating risk management system by constructing personal credit system and controlling the insuring process. And then, we should enhance the ability of supervision of market through two aspects:insurance companies and business banks.From the aspect of insurance companies, the rate of insurance should be ascertained properly, the regulations on administration should be detailed, agents' quality be improved, and the process of operation be supervised. From the aspect of business banks, demanding assurance should be eliminated, commission be reduced, the pattern of commission paying be regulated, and account building business be specified.