Study On The Functions Of Rural Personal Insurance In Rural Old Age Security System

The reform of rural old age security system takes an important part in our country's rural developing plan. This paper aims to explore the especial obligations which the personal insurance takes during the process of the reform.In these years, the reform of the rural social security system which includes the old age security system has become an important issue for China, and the transformation of rural society make it more urgent. There is no doubt that the new system will be multi-tiered and set up a systematic procedure.Generally speaking, the endowment insurance which has two basic model-DC and DB, is called"fist-pillar"and takes the foundational role in the"multi-tiered"old age security system, while the life insurance is in the part of"third-pillar"as the supplementary of the endowment insurance. But the situation is different in rural area of China. At present, the pension system has not been established there and the government just has the limited capacity of giving helps to guarantee its people live up to"lowest-level"but not"basic-level".At the same time, personal insurance in rural area does a better job than what it is expected to. More rural resident put their money in the insurance company, while personal insurance takes more important part in the rural aged security system.Firstly, the paper begins with the background of research, aims of study, the relaxed definitions and the innovational points of the author. The author describes the characters of the rural society during the transformation of it. As the reform going deeply and the advance of industrialization, the "family insurance" based on the land has faced the challenge from the market and industrialization, and can't meet the social conversion. It is crucial to set up the new rural old age security system.Secondly, the paper overviews the theories about multi-tiered security, and then combined with the definite circumstances of rural areas the author thinks about the multi-tiered theory personally and gets some new points about it. This paragraph also reviews the latest complexions of the two main forces in social security domain—the government and the market. The situation can be sum up as"government is absent, and market goes first".Thirdly, the paper explores the especial obligations which the personal insurance takes in the old age security area. As an effective way of personal risk management personal insurance execute an essential role in this field. In addition, compared with the governmental factor, personal insurance has some predominance like flexibility and specialty.In the fourth part, the author gives some advises on the development of rural personal insurance. To accelerate the consummation of the market, we should do more work in propagandism of insurance, innovation of the product and reform of distribution policies. Meanwhile, the government also should take some measures to support it, which include enhancing the insurance knowledge, widening the spread-are of rural life insurance and offer some favorable policies to it.