The Asymmetric Information Of Insurance Brokerage Market In China

In2012, premium income of insurance companies throughout the nationwide achieved100.772billion yuan, in which insurance brokerage agency achieved premium income of421.06billion yuan:property insurance premium income of340.24billion yuan; life premium income of6.368billion yuan; classes of reinsurance business premium income of1.583billion yuan. The insurance brokerage industry has started to develop fast in recent years. And a large number of customers, insurance companies is gradually starting to accept and trust insurance broker, and they has begun to attach importance to the insurance brokerage firm, and some insurance companies have formed a strategic partnership with the insurance brokerage company. In China’s insurance market, the insurance broker has no longer vacant. Owned insurance brokerage firm got a significant part of the business to the technical superiority of their own areas of expertise. But also should see the development of China’s insurance brokerage market is still in its infancy, compared with the more developed countries of the municipal insurance market, the market share of the insurance brokerage market is still small, its development is still much room. With China’s rapid economic development and the opening up of the insurance market, the insurance market has become increasingly complex, which means that China’s insurance brokerage industry, as well as other insurance intermediary industry must release the footsteps of a comprehensive, full-speed development, in order to better play to their own role in promoting the healthy and orderly development of China’s insurance industry.Developed insurance market can not be separated with insurance intermediary system. The insurance activities of asymmetric information is the premise of the insurance intermediaries and the form of insurance intermediary market. Using asymmetric information to explain the existence of financial intermediaries is the hot issues of the1970s financial theory. In insurance market, insurers and other market players (policyholders insurance regulators, insurance intermediaries) are different in nature, different levels of information asymmetry, directly related to the problem of asymmetric information between insurers and insurance intermediaries whether to exacerbate or mitigate the problem of information asymmetry between it and the insured. Theoretically, insurance brokerage market presence of asymmetric information in the underwriting process to resolve the insurance parties to provide a place of communication, and improve the operating efficiency of the insurance market. However, insurance broker has a team of professionals, a group of insurance with the insurer or the insured does not have the insurance broker of knowledge and technology in the insurance brokerage market, relative to the insurer or the insured in terms of insurance brokers in the information advantage, due to the insurance broker and the insured or the insured’s expected utility is inconsistent, the broker may use its own information advantage, by means of concealment or fraud against the insured or the insured’s interests, for their own interests, resulting asymmetric information in the insurance brokerage market.With the development of China’s insurance industry, the insurance brokerage market also began to improve gradually, the insurance brokerage market information asymmetry has been a certain degree of concern. However, the insurance brokerage market information asymmetry, information asymmetry between insurance brokers and insurers in particular the lack of a more systematic and comprehensive theoretical research, insurance broker system is still very backward relative to the insurance agent system. Only solve the insurance brokerage market information asymmetry problem, the insurance brokerage market be possible steady and rapid development, which is the meaning of this article.This study based on the status of China’s insurance market. In order to come up with the strategy to improve China’s insurance brokerage market, here use the brokerage market experience from developed countries and the analysis of the asymmetric information between the insurer and the insurance broker.