On The Reform Of Chinese Insurance

State-owned insurance enterprise is an important component of financial industry in China. As the objective of economic structure reform in China has been established to institute socialist market-oriented economy, the direction of reforming economic management system in insurance company is determined clearly to set up the system of modern commercial insurance enterprise. In recent years, the research and practice field of the system reform in state-owned insurance enterprises have changed, from how to perfect management and operating mechanisms to how to institute new system, from improving the efficiency of mechanism partly to innovating the overall institution. However, there still exist some shortcomings and drawbacks in present study and practice. For example, special emphasis is laid on introducing diverse models of developed countries and usual practices. But little attention is put on how to carry on the history of state-owned insurance company to take good use of their advantages. Thus, in writer's view, it is essential for PICC (the People's Insurance Company of China) to set up the structure of modern enterprise under the background of economical globalization, based on inducing and analyzing the stages of system transformation of PICC and drawing on the experience of commercial insurance companies in West counties, in view of insurance science, principle of modern enterprise and institutional economics. At same time, the viewpoint of this paper is worth considering while designing the schedule and measures of reform in detail. This is why the system reform of PICC is selected as the subject of the thesis.This paper surveys and analyses the backgrounds and main characteristics in the developing process of management system in PICC from both vertical angle of system changes and horizontal angle ofcomparing systems among modern insurance entities. And this paper also analyses the existing problems and their sources and appraises objectively the whole history of system reform. Thus great attention should be paid on establish one new system to be in keeping with international practice and trend and maintaining historical advantages. This paper is designed to study its subject from the angle of institutional economics.Three chapters are included as following.The first chapter states the whole process in which PICC has been reforming and perfecting its management system. There are three stages. And main content of operating system in each stage are also expounded so as to show that the system reform is one type of institution change in essential. That is, more efficient system is to replace comparatively inefficient system.The second chapter draws the conclusion that to deepen the system reform of PICC is an inevitable outcome in new era. Facing the trend of economical globalization and internationalized competition in insurance market, PICC must have his own advantageous system to be suited to the open circumstance. The introduction of the principle of modern enterprises foreshadows the following statement and designs the general idea of establishing modern enterprise in insurance industry. In order to show the necessity of deepening the reform, the paper clarities the gap between the current system of PICC and that of modern commercial entities by revealing the problems caused by existing system from macro-supervising view, regulations and laws, etc.The third chapter, ideas of the system reform of PICC, is the core of this paper. In the light of the discussion of the first two chapters, content and details during the reform process are expounded comprehensively. And some suggestions on necessary and auxiliary measures are also stated. This chapter is divided into four parts.Firstly, comparing limited liability company and other enterprises, this paper put forward the viewpoint that setting up stock company is thebest way to reform the institution and arrangement of property right, for PICC has possessed two important conditions: the theoretical foundation and the exper...