The Research On Prevention Mechanism Of Litigation Risk In Insurance Company

In the increasingly open and growing insurance market, the insurance company hasto face more and more laws, so the litigation case is more and more. The result is thatthe insurance company little wins and loses a lot, with the litigation risk becomingbigger and bingger.The mainstream views that the insurance company is too dominant.So our countryhas to amend the legislation to protect the insurant. The revision of the insurance lawin2009increases the burden of the insurance company,which may give rise to higherfailure rate of the litigation.In the severe external legal environment,the prevention system of internal litigationrisk in the insurance company is not complete.There are many defects in eachlink,such as lacking of service standards.So the insurance company has to face thehigh pay because of failure of lawsuits. Litigation risk may trigger the positive systemrisk, becoming a unstable factor in the insurance industry.Under the increasing trend of insurance density and insurance depth, the litigationrisk in the insurance company doubles up,too. However, the insurance company takesdifferent measures to prevent the risk in practice.And the research on preventionmechanism of litigation risk is failed to get the attention of the society. Facing thefailure of the litigation, the insurance company often seems helpless and stranded.Therefore, the author selectes this subject, from insurance company interestsperspective, on the analysis of the present situation of the litigation and the insurancelaws and regulations, to plan a system including three parts-prevention system beforethe litigation, participation system in the litigation and summarizing system after thelitigation.In the prevention system before the litigation, the author puts the emphasis on theestablishment of two institutions.One is the risk control department, and the other isthe legal department. The top-down information transfer and the bottom-up report institution can effectively improve the risk management efficiency. At the same timethe insurance company should strengthen the training of the employees about the law.In the participation system in the litigation, the legal staff and the compensate staffshould cooperate with each other. The insurance company must get ready to litigationwork as soon as refusing compensation,which can improve the insurance company’sinitiative.In the summarizing system after the litigation,the insurance company need toclassify all kinds of lawsuit documents.The board of directors summarize theinformation to perfect litigation information database.At last,multiplex disputeresolution mechanism may be put into use.The author hopes that this sdudy can be helpful to the insurance company, andpromote the continuous development of the insurance market.