Research On Legal Problems Of The Individual Agent System In China’s Insurance As Well As Its Improvement

With the economic globalization, China’s insurance industry has been developingrapidly, and is playing an increasingly important role in the national economy andsocial life, as evidenced by a steady growth of the premium scale, a fast increase inthe market body and a gradual optimization of the market structure.The insurance agent system, an important component of the insurance market,sets up a platform of information for the insurance contract parties, which plays apositive role in saving transaction costs, improving transaction efficiency andenhancing the professional services. Particularly, the innovation and practice of theindividual agent system in recent20years have significant effects on thedevelopment of China’s insurance industry. The individual marketing mechanismpromotes the development of China’s insurance industry greatly, and the steadilygrowing agent team becomes the backbone of the insurance companies.While the individual insurance agent system has made a great contribution to therapid development of China’s insurance industry, problems also arise due to anunsound system, which seriously hinders the development of the insuranceintermediary market, disturbing the insurance market order. Problems of greatconcern include: a large number of the dishonest personal agents conceal, mislead ormisappropriate premiums, which spoils the insurance industry’s image seriously; anoutstanding contradiction still exists in terms of the low quality, high mobility andlow social status of the agent team; there is a lack of legal supervision, self-disciplineand sound daily management of insurance companies. All these mentioned abovehave become bottle-necked restriction and serious hazard to the sustainable andhealthy development of the insurance industry. The reasons for these phenomena should be considered and analyzed from theperspective of the law: the first one is the agent system and its governing legal systemare not complete, lacking regulations on the legal level; the second one is theinsurance individual agent system, introduced entirely from the developed countries,is not fully adapted to the specific conditions of our country; the environment of theinsurance intermediary market is not mature, making it difficult to develop an healthyindividual agent system; the third one is the supervision system is not perfect enoughto provide effective regulation and supervision on insurance individual agents.Toresolve the outstanding contradictions existing in the individual insurance agentsystem and break through the marketing system dilemma, we must take measures toimprove the legislative system, implement an effective supervision mechanism, andcultivate the insurance intermediary market. Through rigorous system and flexiblemechanism, we can further develop the insurance industry in a regulative andinnovative way, and thereby promoting the prosperity and stability of the insurancemarket.Through the research on the basic theory of insurance agent, the current situationand existing problems of the development of insurance agent system in China and theexperience learned from the developmental mode of overseas agent systems, thethesis proposes corresponding countermeasures in several ways: establishing the legalstatus of individual agents; defining clearly their legal rights; improving andreforming the supervision mechanism and innovating the marketing mode, all for thepurpose of improving the individual insurance agent system to ensure a furtherhealthier development of the China’s insurance industry.