On China's Insurance Market Failure And Circ Regulatory Response

Recently, with the financial crisis broke out in USA and global, financial stability and supervision increasingly become a big concern for government and economics. In one hand, insurance market is the key industry for social stability. In the other hand, insurance has market failure, so it is very important and necessary that government do the qualified supervision. With the opening door and rapid development of Chinese insurance market, we are faced more and more market failures before us. These failures are caused by the consumer, the provider, the intermediate institution, and the supervisor. Now, China Insurance Regulatory Commission (CIRC) is the legal supervisor for Chinese insurance market. However, it addresses symptoms but not root causes mainly because CIRC could not take adequate and effective measures. In this thesis, the author analyzes what is and what caused Chinese insurance market failure and insurance supervision problem through the method of systematic study, comparable study, experience study, case study etc. The author also introduced the developed countries' good experience, and suggests how to improve our insurance supervision by selective bringing. At the same time, she provides the strategy, the method, the ways and means how to reform our insurance supervision system. She hopes to improve the study of the basic theory of insurance supervision in our country, and perfect the corresponding insurance supervision innovation and practice, hopes to establish a healthy, ordered, international insurance market which will be helpful to Chinese finance and economics in the future.