Research Internal Control Of Insurance Companies

Building an effective internal control mechanism is an essential requirement of an insurance company to reach business targets, ensure stable operations, and reduce business risks, especially when insurance market is more and more open, and the competition is more and more cruel in China. It becomes a consensus in insurance industry that it is necessary to complete and strengthen internal control mechanism and supervision system. According to development experiences of insurance companies in west, controlling internal mechanism is an important part of fine management which has directly influence on operational efficiency. Therefore, it is not only theoretically important but also practical significant to study internal control in order to reach strategic objectives, lower business risks, and maximize profits.Based on analyzing the theory of the internal control of insurance companies, this paper discusses the construction and operation of internal control mechanism. Moreover, this paper analyzes the current situation and problems of internal control of insurance industry in China. To solve these problems, solutions are given precisely step by step.