Research On Improving The Internal Control System Of Life Insurance Companies

litteiital C0I1I1DI Systeui (1(18) is an ijitewai part of internal IIIana2eIiIeiit for a hfe insuret: It playS an iiuhitaiit role in gLIaI(Iiflg :mwunst operatioii nskc and guaraitteerng the robustness of iitsuraucc coIttpanies. After the financial tunnoil broke out in Asia, life insurance companies in countries, such as Japait, South Korea etc., went into bankruptcy or have been restructured. All these are presentiii warning signals to Chinese 1I1I insurei. bereiore we lutist petkct itS to tatnttl against life insurers?opcltIolI risks, improve competitiveness, establish iuodcrui enterpnse institutiott, gain healthy developittent of Chinese industry (hinese life ins^uaiwe industry bas only c¹wticimccd a shoi扞 lm^storv. l)tw to its low level otit^anageinent. there exist mttany problems that shall h owrcotne. ucy mainly include iusuflicieutt atEentioii. incompleteness ol internal CE )Idrf ml f)I^alIZatH)Iu structure. imperfect tnec1aniⁿ of inteial coaitrol, Luilures of internal control wa^s and the lack E)finteruial supettsion. over 1(28. the objects of petkc#ing l( ^S arc as $i?llnws. First, they must ensure the enforceiutent of insutncc laws and rtidatU)Ii5 Second. the^?mud e^taaraatee time fullihhtnent of life insurers tmnnagernent strategies and tactics. Ime third one is tt identt1 measure antI control operation risks, last one is to keep mniruit,tal level of solvency to nteet the rcttuiriinents by rcuulator- attthotity hc principles to perfect ICS artkgalit, effectiveness. dtsctxtton, coniprchcnsiveness, pievenlive and inter- balance. Throtni.h dcnrortrafirtg the importance of itS iii life insurance companies and comparison with foreign insurers?experiences, on the fi,undation of analyzing five above-mentioned problems with (itinese life insurers, this article shows dearly both the objects and principles t^r e4abhislthng itS. lrtherntorc, I also present ⁱy Own Suggestions 011 hOW to pcikct ItS in (luinmcsc liii?insurers. ucy can lx?described as ItS that is oo tlw base of or^oi;?ation fran,cwot with the cont? of strict tcutioit system amvl ^mndvr the supeni扞oo of internal chtcvk aim! audit. Organization fraztmework niainlv includes otanagenlettt systetnm (if o1ily<sup>iI1e-dass (if legal pcrsoli, professionals?committee, w ional mllanagcuuIclit ccmtfrm's, training and education sstcm. Execution sctt扞u concits of life insurance btiticss cmmmitml s^stenm. financial control svsteni and key indicators of perforinauict? lie check and audit system mtmcans Systciii structure, twins, ways as well as constictioiu of Board of Supcrvisom. Finally this article li^ls a lot of prOI)lc5lls tIiⁱt are ilCCtICd tim he solved properly for the life insurers to perfect I( 8. Oct., l⁾7...