A Research On The Insurance Market Exit Mechanism

With the gradual deepening of China’s insurance market reformation, the marketmechanism is playing an increasingly important role in the allocation of resources of theinsurance industry，and the insurance market exit mechanism is actually the inevitableresult of the insurance market’s operating. The establishment and perfection of theinsurance market exit system, and the guarantee of insurance body exiting the marketstably, have become the common consensus of insurance theory. At the same time,according to the foreign successful experience, a perfect insurance market exitmechanism is the necessary condition of the insurance market, and also the objectiverequirement to improve the operational efficiency of insurance market, and to promotethe development of the insurance market.So far, China has not yet established a complete insurance market exit mechanism,while the domestic relevant research to the exit mechanism is still inconclusive. With themixed operation, the development of financial globalization and the opening of China’sinsurance market, China’s insurance industry is facing more and more competitivepressure which is from the international insurance financial group. Therefore, in order topromote China’s insurance industry developing sustainably and stably,how to learn fromthe experience of developed countries and establish a set of perfect insurance market exitmechanism which conforms to China’s national conditions, is one of the critical issueswhich China’s Insurance industry is facing.In addition to the introduction, this thesis is divided into four chapters. The firstchapter introduces the basic concept of insurance market exit, the particularity and theexit principles, in order to provide a theoretical basis for the following discussion. Thesecond chapter discusses the current situation of China’s insurance market exitmechanism, analyzes some problems existing at present and pointed out the necessity ofestablishing the insurance market exit mechanism. The third chapter is the introductionand reference of the United States and Japan insurance market exit mechanism. Firstly,this thesis introduces both the United States and Japan insurance market exit mechanismfrom the three aspects of laws and regulations, the risk early-warning system and the insurance guaranty fund system, then compares the exit mechanism of the two, finallyconcludes the reference and enlightenment of insurance market exit mechanism in China.The fourth chapter discusses the policy recommendations to perfect China’s insurancemarket exit mechanism in great detail, from the establishment of insurance market exitlegal laws and regulations, the perfection of the risk early-warning system and theoptimization of the insurance guaranty fund system. Through the analysis, the authorhopes to meet the purpose of completing the construction of China’s insurance marketexit mechanism.