Insurance Companies Withdraw From The Market In China's Legal System And Safeguard Mechanism

With the open of insurance market and intension of market competition in China, the withdrawal of insurance companies' from the market is not a remote hazard. The regulation of insurance companies' withdrawal from the market, the keys of which are legal system and protective mechanism, must be strengthened after the gradual maturity of the regulation of insurance companies' entrance into market and their operating behaviors. On the basis of the introduction of some basic conceptions and experience of developed countries, combined with the reality of China, the thesis provides some suggestions on the construction of legal system and protective mechanism of insurance companies' withdrawal from the market in China.The whole thesis is divided into five parts.The first part is the introduction, which demonstrates the background, research premise and research methods of the thesis.The second part is the introduction of some basic conceptions and the illustration of the related problems on insurance companies' withdrawal from the market. Insurance companies' withdrawal from the market refers to the termination of insurance companies' operation because of market elimination. The mechanism of insurance companies' withdrawal from the market refers to a series of rules which regulate insurance companies' withdrawal from the market, including the types, methods, principles, procedures, undertaking of the loss, compensation for the policyholders and so on. The reasons of insurance companies' withdrawal from the market are mainly the change of economic environment, the loss caused by catastrophe, the failure of companies' operational and financial management and so on. The types of insurance companies' withdrawal from the market include takeover, merger and acquisition (M&A), administrative cancellation and bankruptcy. In the end of this part, the thesis analyses the necessity and particularity of insurance companies' withdrawal from the market. The third part is the introduction of legal system and protective mechanism of insurance companies' withdrawal from the market in foreign countries and Taiwan region. The dispose of insurance companies' withdrawal from the market depends primarily on market and law in USA and UK, while it depends essentially on administrative intervention in Japan and Taiwan region. The experience and lessons of these countries and regions are worthy of our study.The forth part is about the regulation of insurance companies' withdrawal from the market, including the construction of insurance regulative warning system, the determination of the qualifications and the supervisory decision of insurance companies' withdrawal from the market, and the protection of policyholders after insurance companies' withdrawal.The insurance regulative warning system can reflect insurance companies' operational risks and financial risks and provide the latest information of insurance companies in crisis, which help the supervisor to control the risks to avoid disastrous consequence. The determination of the qualifications and the supervisory decision of insurance companies' withdrawal from the market are complex and random to some extent. The thesis points out that the supervisor should compare the costs and profits of insurance companies' withdrawal and detainment and select proper type of withdrawal according to its aim of insurance regulation. To protect the interest of policyholders, insurance guaranty fund system has been set up in many countries, which can provide proper compensations for policyholders and keep the financial system stable.The fifth part is the author's suggestions on the construction of legal system and protective mechanism of insurance companies' withdrawal from the market in China. Firstly, certain principles must be followed in dealing with insurance companies' withdrawal from the market such as prudence, timeliness, risk's minimization, voluntarism and accountability. Secondly, the definitions of the aim, supervisor's du...