Insurance Company's Financial Governance Research

With China's entry into WTO, Chinese insurance companies arenow facing very fierce competition from all around the world. China'sinsurance market which can be called the biggest, youngest and mostpotential market in the world, has great attraction with the foreigninsurance companies. What should China insurance companies do to facethe challenge and grasp the chance in the drastic competition becomes theprimary question to consider the managers. How to improve thecompetence is the most important problem the domestic insurancecompanies need to deal with. The internal finance governance is one ofthe key drivers to an enterprise's competence. Therefore, many expertshave tried to do some research in this field. This dissertation's purpose isto set up a complete financial governance system. The dissertation has two parts that include four chapters. The firstpart analyzes the basic academic problems. The second part deals withthe current finance governance, reasons for no function and thesuggestions to the domestic insurance companies in reference to foreigncompanies' finance governance experience. Chapter one: Manage the basic theories survey financially. Theresearch history of finance governance can be divided into two stages:western basic research stage and domestic build-up research stage. Invery early time, the western researchers found that corporate governanceand the corporate finance can be studied together. Then, they brought upthe concept of finance governance. Based upon their research, thedomestic researchers deal with wider field on finance governance such asfinance governance structure, etc. Chapter two: Insurance company financial affairs control thediscussion of the theory. In this chapter, the academic basis and thedifference between finance governance and corporate governance,finance management of an insurance company are pointed out. Also, thedissertation deems that the purpose of finance governance of an insurancecompany is the same as that of other companies, which is to realize thebalance on information and on advantage of internal and external relevantparts. However, because of the specialties of the operation of insurancecompany, the finance governance should be different. Among them,thetheoretical foundation of insurance company finance governance is veryimportant. Chapter three: Drawing lessons from the finance governance offoreign insurance company. From the result of compared financegovernance of Japanese and American insurance companies in threeaspects, the experience which will do well to our finance governance ispointed out. And the enlightenment that manage to the financegovernance of insurance company of our country. The insurance companyof our country can use their finance governance well experiences, methodof managing the respect for reference. Chapter four: Current situation, countermeasure prospect of financegovernance of our country insurance company. This chapter is a focalpoint of this text. This chapter includes the main content of thedissertation. The current finance governance situation is worth of moreattention, which can be called "internal part control under interfere fromgovernment". The reasons for it are two: 1.there is no supervisionfunction of share holder's meeting; 2. The jurisdiction interfere isdeferred. After recognized these shortcomings, the dissertation brought uptwo suggestions on finance governance of domestic insurance companies:1. set up audit committee to perfect internal control; 2. the externalsupervision should be strict to improve the quality of finance informationdisclosure. It is guarantee from the above that financial governance ofinsurance company of our country go on the good track to come toexpound the fact. Finally, manage through current situation of the financegovernance of foreign insurance companies and the comparison ofinsurance company and other enterprises, we have put forward somesuggestions about the finance governance of insurance company of ourcountry.