Learning From The Experience Of The U.S. To Develop The Insurance Credit Rating System In China

Due to the development and depth of Reform and Opening policy,Insurance has developed greatly in China in the past twenty years,the Premium income from the 1980 restoration of the domestic insurance business rose to 460 million yuan in 2006 of 564.14 billion first year grew at an average rate of about 30% each year.What has happened in China is well known in the world wide. However, it has to be admitted that there are many problems, for example, Lack credibility and Asymmetric Information , how to help insurance company to reinforce the competitive ability, how to strengthen Monitoring to promote the development of Insurance and so on. In order to solve the problems mentioned above, it is necessary to set up Insurance credit rating system。The reasons include that this system can reduce The decision of the insured ,establish the competitive advantage of Insured and improve the efficiency of Insurance Supervision。This system plays an important role in increasing the efficiency of the whole insurance market.In China fully and analyses the innovation of Rating methods and application of Rating index in foreign insurance company. This paper discusses, studies and learns lessons from Credit rating methods in American insurance companies, at the same time, it is also concerned with the bottleneck of Credit rating system in China and states the plans and counter measures to build the Insurance credit rating system in Chinese insurance companies.The author holds the opinion that Credit rating should be based on Insurance industry regulator。In addition, Insurance credit rating index system in China should be domestically and internationally, which is the supplement to International rating system。It aims to set up Chinese Insurance credit rating institutions both with obvious Chinese and international characteristics.This paper is divided into three sections:Section one is the basic theory of insurance credit. It explains the meaning and Operating mechanism of Insurance credit rating system on the base of the meaning of credit and insurance credit. It analyses the Theoretical sources of Insurance credit rating system particularly such as Risk Aversion Theory,Property Pricing Theory and so on. Moreover, this section introduces the effect of Credit rating and present situation of Credit rating in China.Section two is the core of this paper. The United States is the world's most developed insurance industry, the most comprehensive national insurance credit rating system. Insurance operations had its credit rating process, rating agencies and the rating method which has been studied and replicated in other countries has been. Therefore, to establish and improve our credit rating system, in particular the United States needs to learn from advanced foreign experience rating。Firstly, it states the birth and development of Insurance credit rating in the U.S.. Next, it is completely explored that the experience of model,Operation,Credit rating methods of American insurance credit. Also, the difference between Chinese and American Insurance credit rating system is compared so as to indicate the shortcomings of Insurance credit rating system in China.Section three is focused analysis of the current development ,and improve our credit rating insurance policies and credit rating system, this is the end of the text. This section analyzes and research Urgency and Feasibility of setting up Insurance credit rating system in China. Based on the analysis and research above, China's insurance credit rating system that would process factors such as the obstacles faced by the credit ratings of the insurance awareness inadequate, given the relatively low level of credit rating agencies. The rating of the company to provide information and the lack of effective disclosure of information systems for a thorough analysis, according to the conditions of our country, increase from the external environment, and establish and improve related laws, strengthening the training of personnel and other areas to assess our credit rating system proposed construction of the relevant recommendation...