Premium Rate Market Risk And Its Prevention

Ⅰ. The Research Topic and Significance of the Topic China Insurance Regulatory Commission has pursued the rate marketization pilot project of the car insurance in Guangdong Province since October 1, 2001 on the basis of further investigating and fully proving; the core of the reform is to stress the important function of market when insurance rate is determined. More than one year's experiment, though have fully playing the positive role on the aspects such as car insurance structure, the cost accounting of insurance companies, and the sense of risk of insurance companies etc, some problems that have occurred worth attention of inside and outside people insurance industry, too, Such as pricing risk, market risk, underwriting risk, withdrawal risk, and so on. Because the discussion of rate marketization risk also remains at preliminary stage in theoretical circle and practical circle ,and the discussion on precautions against risk seem loose, and systematic study is also not enough. In view of that, the authour selects the topic of insurance rate marketization risks and precautions against that to discuss.This thesis regards rate marketization pilot project of the car insurance as the starting point,sums up the positive effects and problems that have happened in the course of reform, which is used as a guide and mirror to predict and analyze prospectively the risks that exist or will appear in the course of rate marketization on the general kind of insurance; puts forward some systematic and constructive suggestion.Ⅱ. Structure of this ThesisThe overall train of thoughts of this thesis is: starting with from the analysis of the original causes of insurance rate's marketization, and learning from the risk that has happened, it Probes into the rate maketization risk due to system changing environment's defect and theweakening of microeconomic subject self-restraining mechanism in transitional period in detail. The thesis consists of five sections:Part One probes into the original causes of rate marketization risks. From the point of view of system changing, any system changing or new arrangement of system has relation to its micro or macro economic environment nespectilely. Some diverrencies takes place in the course of transition because the imperfection of the system-changing environment, which should be paid attention to particularly by the people of internal or external insurance industry. 1. From the aspect According to micro environment, in organizational management of the insurance companies at first, there are some drawbacks in its system that have added the potential risk to rate marketization of insurance company; Secondly, as for the managerial strategy of the insurance companies, because of information asymmetry of market, and insurance companies utilizing rate making automatically to reduce insurance price, insurance companies have to face market risk ultimately. Moreover, according to managerial means of the insurance companies, because the management level of insurance companies is also very low in our country and underwriting and claim adjustment technology has not substantive break-through for a long time, and life actuary or non-life actuary scares, it is inevitable to cause the marketization risk of rate.2. From the aspect of macro environment, because the laws and regulations are loose, and the supervision of the supervision departments of the insurance are insufficient and uncomplet, there will be some new risks in the course of reform in the initial stage of insurance rate marketization.Part Two discusses the concrete composition of the marketization risk of insurance rate in detailFirst of all, it sums up the positive effects and the problems that occurred in the course of car insurance rate marketization. Secondly, it analyses the concrete composition of the marketization risk of insurance rate especially: Phased risk and permanent long risk. The former includes the market risk, business risk, etc; while the latter is a pricing risk that...