The Risk Prevention And Management Of China's Non-life Insurance Industry

Non-life insurance operates in different levels of society, millions of policyholders and the insured persons'economic interests. It has a large number of property risks and provides for individuals, families, businesses financial security in maintaining family stability and social stability.Non-life insurance industry plays an important role in the national economy, with its strong economic strength,by way of promoting economic development funding. As a micro-economic entities, non-life insurance companies faced with many uncertainties,in the process of competition and operation in accordance with market rules. The existence of these uncertainties and interaction brings risks to non-life insurance companies and leads the risks more complex because of the particularity of the object of non-life insurance companies.The impact brought by "sub-prime crisis" of the U.S. is now not only more and more intense but also affects China's economic order. At present, the financial crisis has produced a profound impact on the global real economy. The world economy has suffered a marked slowdown in 2008 and the downside risk is increasing gradually in accordance with the uncertain outlook.As China's insurance industry is largely opened to the world and the marketization is with a high degree, the spread of financial crisis will inevitably bring about a number of adverse effects to insurance industry. In the situation of current financial crisis, which impact China's non-life insurance industry will have and which risks it will face? How should China's non-life insurance companies formulate appropriate risk-prevention strategy against the current situation? Further thought, how could them look for opportunities to gain a larger development in the crisis? Therefore, this article traces the origin and starts from the insurance operation and management theory, risk and risk management theory and the theory of financial crisis prevention.It analyzes the operating situation of China's non-life insurance before financial crisis and researches the reaction mechanism to China's non-life insurance industry brought by financial crisis in two aspects of market size and market performance. Then it analyzes the impact by financial crisis on China's non-life insurance industry,in three areas of non-life insurance operations, non-life insurance regulation and non-life insurance demand.On this basis, the author analyzes the external and internal risks faced by insurance companies in the macro level,from general analysis to special analysis in-depth discussions.In the end, the author thinks deeply the reflection between non-life insurance industry and corporation value creation and the connotation of risk management in non-life insurance industry.Then brings forward the overall direction of proposals to build the risk prevention mechanism of China's non-life insurance industry.