Study On Compliance Management System Of Insurance Companies

Since the1990s, a series of major financial scandals and operational risk casesoccurred on the international financial and insurance markets, for most of them lackedsound and effective compliance risk management system in the internal. WorldFinancial and insurance supervision departments have issued guidelines orrequirements for internal compliance department building, and financial enterpriseshave begun to pay attention to compliance risk management, establish and improvetheir compliance risk management system. China Insurance Regulatory Commissionissued Guidelines for the insurance companies’ Compliance Management in2007,which required insurance companies build up compliance management system inaccordance with the guidelines, in order to effectively identify, proactively preventand resolve compliance risk. In lines of that, could insurance industry be healthy andsustainable development.China’s insurance industry compliance risk management started late, and stayed inlower levels of management, till now, scientific management system has not beenformed yet. And most insurance companies set up compliance positions just to meetthe needs of regulatory authorities; the so-called compliance departments in largeenterprises are also groping forward.First, the article applied literature research, case analysis, inductive method todescribe the concept and theory of compliance management. Second, revealed theproblems in the insurance industry compliance risk management by analyzing thestatus quo of the industry, and the data published by CIRC punishment. Third, thearticle analyzed the compliance risks that the insurance industry faced, described theperformance of the insurance companies’ compliance risk, and made classification ofthem. Forth, the article focused on points of compliance risk management system,measures for resolving them, compliance risk control activities by means of culture,processes, information systems, supervision and inspection. To design the compliancerisk management system based on the COSO-ERM framework forInsuranceCompany.Fifth, the article briefly introduced the general situation and problems ofZHInsurance Company.This article is looking forward to intends to provide reference for insurancecompanies’ to establish compliance risk management system, thus promote theinsurance industry.