The Research On Internal Control Of Auto Insurance Based On Risk Management

As the rapid increase of the property insurance companies, premium rates gradually liberalizes, which make the insurance companies competitive increasingly. Auto insurance business accounts for more than half of the property business and become the main aim of different property insurance companies. In order to obtain market share, price war is more and more serious ,and auto insurance business's losses is growing .At the same time, the existence of insurance fraud effects solvency of insurance companies. For rectifying the property insurance market order, guarding against operational risks, promoting good and fast development of the insurance industry, China Insurance Regulatory Commission (CIRC) published《Further standardizing property insurance market order program》in 2008,and pointed out that focusing on the serious problem of market and strengthening internal control and supervision as a means is in order to form a good situation with orderly operation and reasonable competition. To ensure the implementation of internal control, a sound internal control system is the key to solve the problem. This paper is based on the idea that strengthen risk management of the auto insurance business and strengthen internal controls is a sound way to improve the plight of the current loss.This article is based on internal control of auto insurance under enterprise risk management framework. This paper mainly uses normative research methods, at the same time, uses data and cases as an auxiliary description. In this paper, there are six chapters at all. The first chapter analyses the objectives, significance of the study .The second chapter uses the theoretical basis of internal control and risk management in analyzing auto insurance internal control. The chapter three analysis the cause of auto insurance loss and pointed out that the key reasons for the loss is inadequate internal controls and lack of risk analysis and assessment.The chapter four makes the detailed risk analysis for every aspect of auto insurance business and lays a solid foundation for the next chapter. The chapter five suggests improving the internal control through five aspects, such as strengthening the internal environment, the risk assessment control measures, information communication ,and day-to-day supervision.The final chapter analysis the strengths and weaknesses of internal control of PICC, and points out that" three centers" internal control building is useful.