Improve The Insurance Market Regulation In Sichuan Countermeasures

Insurance supervision is the supervision and management of insurance industry made by government. National insurance supervision commonly consists of two parts. First of all, the country macroscopically instructs and administers the domestic insurance industry through establishing relevant insurance law and regulations. Secondly, through establishing the relevant Institution of insurance supervision function, the government executively manages the insurance industry according to law or administrative authorization in order to ensure the implementation and execution of insurance law and regulation. In China, China Insurance regulatory commission (briefly"CIRC"),acted as the executive management and supervision organization of commercial insurance throughout the country, performs the supervision and management of the national insurance market, It adopts vertical management and practice management regionally.In recent years, the business size of insurance market in Sichuan province increased sharply and the market order obviously took a favorable turn under the supervision and direction of Sichuan supervision and management bureau, CIRC. The sense of business in accordance with law and regulation of insurer enhanced notably and the lawful rights and interests of the majority of insurants gained effective protection. In 2006, the income of insurance premium of insurance market in Sichuan province accounts for 240 hundred million, which is four times as many as it in 2000 year. Sichuan province, has been turned from small size to large size. In May. 2006, the State Department issue the regulations:"The measures about expediting reform and development of insurance industry", which brings forward the supporting measures of expediting reform and development of insurance industry from ten aspects and clearly conforms the important component parts of the insurance industry bears in the finance system and the social security system. It also puts forward that insurance industry is the significant industry concerning the national welfare and the people's livelihood. Under the new situation in which the national insurance industry pursue great improvement and the new circumstance in which the insurance market in Sichuan dramatically grows, it is a key issue for Sichuan insurance industry that how to perfect the insurance industry supervision in provincial district, not only directing the steady development of insurance industry but also effectively preserving from trade venture. Considering the situation and flexibly making the change, the supervision institution must continuously explorer the supervising policies adaptable to the new situation and circumstances .The author comprehensively investigated and surveyed the development and supervision of Sichuan province'insurance market in 2006. The December in 2006 witnessed the investigation, which completely analyses the achievements acquired by supervision of insurance market in Sichuan province and the problems faced with it. Based on the foundation of solid evidence, the survey pertinently puts forward the countermeasures so as to perfect the supervision of insurance market in Sichuan. The thesis consists of four chapters. The first chapter which is the theoretic overviews of insurance management elaborates the basic definition and the origin of insurance supervision and introduces the target, content and present situation of our country's insurance supervision in order to make the theoretic base for advancing the supervising policies. The second chapter introduces the development status of Sichuan province's insurance market. Firstly, the chapter analyzes the development condition involving physical geography, economic and policy environment. What's more, the chapter analyzes the present situation concerning the three market specializations: insurance of property, personal insurance and insurance agency and eventually it summaries the general features and the prospect of insurance market. The third chapter formulates the supervision accomplishments and the problems confronted. In the aspect of supervision accomplishments, the chapter introduces the achievements concerning directing industry development and the preserving from venture respectively. After that, a series of problems in supervision of insurance market are mainly advanced in such areas as follows: unreasonable competition has not been kept within limits effectively causing the serious impacts on regular market system; the operating risk of insurer still exists and the company internal controls should be reinforced; the breach of law and the violation of constitution always take place and the market order should be regulated ulteriorly; business fabric is irrationality and general business benefits still low; the various regions in province developed unevenly; the supervision is weaker and the means is simper; the supervision should be more transparent. The fourth chapter puts forward the countermeasures as follows for perfecting the supervision of Sichuan'insurance market. According to the features of the insurance market and existent problems of the supervision, the chapter brings forward the innovative supervision system in a definite object: performing classified supervision;The supervision system should be perfected and self-disciplined in industry and the internal controls should be reinforced; The supervision methods should be enriched and the supervision not on site should be reinforced; the supervision environment should be optimized and the capacity for directing the industry development should be strengthened; The supervision potent should be integrated and the construction in supervision institution itself should be enhanced.The innovative point in the thesis lies in studying supervision policy according to the operating feature of regional insurance market. At present, the investigation of domestic insurance supervision mainly focus more on one aspect of supervision and its contents in one country's insurance market or special supervision of one product of insurance than on supervision policy as to the provincial insurance market. Knitted together with practice, the thesis particularly brings forward the supervision policy aiming at the feature of provincial insurance market and advances the strategic suggestions used for supervision institution reference for further perfecting the supervision task.