Establish A Comprehensive Risk Management Framework For Insurance Companies

Based on the analysis of Chinese insurance company's risk management present status, this essay is focused on the research of the establishment of insurance company's overall risk management framework. Due to the weak sense of risk management,lack of risk information and the out-of-date management in most Chinese insurance companies, as a WTO member, we will have to face the severe challenges under the international competition in insurance market. Thus, we make our research emphasized on the risks in the enterprises management activities, and try to establish a rather complete risk management pre-alert system, so to basically construct the practical risk management structure system which will serve for the stable management and development of the insurance companies.This essay is aimed to research how to establish the insurance enterprises overall risk management framework. In order to give the readers a clearer understanding of insurance company's risk management importance, the author introduces the present rather out-of -date status of Chinese insurance industry's risk management and analyzes the necessity and importance of strengthening the risk management. Before the research of overall risk management framework's establishment, the provenance and concept of risk management has been briefly introduced. All the risks may occur during the insurance enterprise management has been distinguished in detail. The content and particularity of enterprise risk management scope has been clarified by listing examples and financial analysis. Furthermore, this article introduced the international famous insurance group's case study, analyzed the advanced international risk management experiences, listed the distance between Chinese insurance companies and international insurance groups so to set forth the premises and conditions for the establishment of insurance industry risk management system.In the major part of this article, through the analysis of the overall risk management's framework establishment, the author firstly clarified the importance ofimproving the sense of risk management in insurance companies and necessity of establishing the risk management institute. Secondly, by selecting some representative statistic index, the author described the above mentioned risks, defined the standard figure and pre-alert figure for various index, and strived for establishing the risk management pre-alert system. With this complete risk management pre-alert system, the author made further analysis on the corresponding risk management. Finally, the author briefly analyzed the insurance enterprises risk management's measures during and after the lost so to establish the practical insurance industry's overall risk management frameworkWith quicken pace of insurance industry international management proceeding, as a new WTO member, Chinese insurance industry is facing the sever challenges from the foreign funded insurance companies. Therefore, our companies should strengthen the risk management so to ensure the stable management and development.