| Participating insurance as a new kind of life insurance products, the development in Chinese Insurance market just has a short ten years, but it has a very tortuous experience. The author discusses the development of the participating insurance history and the development in our country to give a brief overview of the participating insurance’s origin and development.Chapter one, the author refer to <The participating insurance Interim measures for the administration>, discusses the definition of participating insurance. Then thinking that participating insurance has the following two characteristics:First, it provides risk protection and additional revenue. Second, the participating insurance product has a separate account.Compared with other types of insurance products, participating insurance can meet the psychological needs of consumers, effectively deal with the risk of inflation as well as be able to respond to the investment market volatility. But the participating insurance income compared to interest of bank deposits is uncertainty, investment is inflexible and it has illiquid limitations.Chapter two, the author elaborates the content, composition and nature of the distributable surplus,because it is a source of dividends.If you want to understand bonus allocation scheme and bonus calculation principle, you must first understand the distributable surplus. The distributable surplus consists of three parts:the dividends distribute to policy holders, the dividends distribute to shareholders and insurance special reserve for bonuses. According to the composition of the contents, I believe that the distributable surplus can be assigned to the dual attributes of both debt and equity.Chapter three,the author focuses on the two bonus allocation methods:Cash dividend and Added risk dividend.i received their conception、 calculation methods and dividend payment.Then I compared the two methods from six aspects:fairness, flexibility, smoothness, simplicity, capital utilization and total bonuses. To analyze the strengths and weaknesses of them. Found that the increased bonus method is better than the policy contribution method, but our current dividend programs are like to use the policy contribution method.Chapter fourth, the author discusses the dividend programs.First, the author summarizes the four principles should be followed in drawing up the dividend programs:(1)To meet the policy holder reasonably expectition;(2) To adhere the principle of fairness;(3)To follow the principle of sustainability;(4)To follow the principle of transparency of the participating insurance information disclosure.Second, I summed up the basic steps of the dividend programs:(1) determine the dividend level;(2) select the appropriate dividend distribution methods and calculation formulas to get Policyholder dividends、the distributable surplus and insurance special reserve for bonuses;(3) To declared the time and allocated objections, and other elements of the dividend programs.Finally, the author discussed the four dividend programs in the CIRC file.I evaluated each program, and found out the following questions.Chapter five, discuss the questions in dividend programs and give suggestions to each problems.First of all, the regulatory standards of participating insurance dividends are not unified. This may cause the insurance companies can not have a correct evaluation criteria to select bonus allocation methords. Therefore, it is necessary to establish clear regulatory standards for the two bonus allocations.Second, the problems about the distributable surplus:on the one hand, China is not clearly defined its nature, I agree that identify the dividends to policyholders as liability, assign the dividends to sareholders as equity. On the other hand, the distributable surplus’ formulation does not reflect its nature, I think that the distributable surplus should be look as the sum of the dividends sources’surplus and insurance special reserve for bonuses’openning amount.Third, our country conservatively reserve the insurance liability, this will damage the interests of policyholders.So the insurance regulators should to relax the standards of the participating insurance liability measurement.Then, I discuss the problems about the dividends source of surplus:On the one hand, when the insurance company make the dividends programs,they ignore the fee difference.That not to meet the reasonable expectations of the policyholders. I think that CIRC can set a standard valuation, when the actual fee slip exceeds the standard valuation, the insurance company should be make the fee difference into account. On the other hand,we lack to use the surrender beneficial. Insurance companies should be make it as a surplus’source.Finally, there are problems in the participating insurance accounting operational practice:On the one hand, the assets and liabilities mismatch in accounting. Lead to the dividend programm basis on the gearing ratio can not effectively determine the level of dividend. On the other hand, the participating insurance special reserve subject has problem. Currently, our insurance companies set this subject still quite a mess. In another aspect, the new regulations of the insurance accounting impact of the participating insurance product’s contract. Because the new regulation made the significant insurance risk testing, due to the participating insurance involves contract splitting confirmation, affecting the determination of the premium income, and then spread to the calculation of the dividend.Chapter six, the author make a summary about this article. The dividend distribution plan is a key factor to the participating insurance long-term stable and healthy development.The innovation of this article:In our country, the study about the dividend program is still less. Many articles made an independent study of the distributable surplus, bonus allocation methords and so on, not combine them with the dividend program to discuss in depth. I hope that this article can provide some help to the development of our country’s participating insurance. |
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