Research On Raising Insurance Guaranty Fund

Financial risk is a part of landscape of insurance business. Although serious regulation measures have been taken, the government can not prevent insurance companies from bankruptcy. With the soaring number of insolvency of insurers, the policy makers had to give more attention to designing a system, which can protect the insurance policy holders. The state guaranty fund systems were created in response to the increased number of insurer insolvency. While the guaranty fund concept was designed to provide policyholders with some measures of protection against the costs of insurer insolvency, it developed a stable circumstance for the industry.Insurance guaranty fund are set up to cover an insolvent insurer's financial obligations, within statutory limits, to policyholders. The basic purpose of it is to protect policyholders against losses which might occur due to an insolvency of an insurer. Consequently, when an insurer is impaired or insolvent, the system is complete or not is quite important.This dissertation researches raising insurance guaranty fund in China and other countries, such as the United States, the United Kingdom, and Japan and so on. Even if there are many differences in the subject of raising fund, way of raising fund, and scale of raising fund, their purposes are the same, that is to reduce the damage might caused by insolvency of an insurer. On the basis of the introduction of some basic conceptions and experience of developed countries, combined with the reality of China, the dissertation provides some suggestions on consummating raising insurance guaranty fund in China.This dissertation consists of introduction and five chapters.The introduction demonstrates the background and research methods of the thesis.Chapter 1 is the introduction of some basic conceptions. First of all, the dissertation simply defines insurance safeguard fund. Then, insurance safeguard fund are compared with some related concept, such as deposit insurance, vertical accident social saving fund and so on. Finally, the dissertation discusses the significance of insurance guaranty fund, including protecting policyholders benefits, promoting transformation and consummation of supervising and managing way, promoting the insurance industry development.Chapter 2 firstly divides the raising subjects of insurance guaranty fund into governmental subject and nongovernmental subject, and separately discusses the merits and drawbacks of the two types of raising subjects, secondly, introduces raising subjects of insurance guaranty fund in China and other countries, such as the United States, the United Kingdom, and Japan and so on, and summarizes the various countries' experience and the development tendency.Chapter 3 divides the ways of raising insurance guaranty fund into pre-assessment and post-assessment according to difference of assessment time. Then, the international comparison research is carried. The pre-assessment and post-assessment each has good and bad points, but pre-assessment is good at controlling management behavior of insurers and stabling the whole insurance industry, therefore, majority country adopt pre-assessment.Chapter 4 is about the scale of raising fund. In the first place, the author analyses the raise quota combined to how the fund assessed, and points out smallest and maximum quota regulation coordinated with pre-assessment is feasible. In the next place, two models are established to show the relation between assessment rate of insurance guaranty fund and the moral hazard of insurers, and get the conclusion that moral hazard will be motivate by fixed or high assessment rate.Chapter 5 is the author's suggestions on consummating raising insurance guaranty fund in China. To protect the interest of policyholders after the withdrawal of insurance companies, the author proposes to establish insurance guaranty fund corporation in China.