The Study On Identification And Regulation Of Financial Reinsurance

In the global economic integration, the insurance industry competition intensified.Coupling with frequent natural disasters in recent years, the financial capital marketdownturn and other factors, all those prompted China’s reinsurance productsinnovation. Financial reinsurance as risk transfer and the important channel offinancing risk, contributes to the earnings management in China’s insurancecompanies; financial reinsurance help to deal with catastrophic risk, improve thesolvency, manage capital financing and strategic. But the financial reinsurance also letsome insurance companies have chance to use the "whitewash statements", such as taxevasion, which caused great harm to social. In2013June, China Insurance RegulatoryCommission issued "on the personal insurance companies use reinsurance paymentrelated matters notice", and the soliciting draft will herald the financial reinsurance inChina is on the verge of "sunshine".In this paper, the key problem is the subject on "Identification and Regulation ofFinancial Reinsurance". In the first place, identification principle of financereinsurance is deeply interpreted and analyzed in the paper. The author defines theconcept of Finance Insurance, and analyses the advantages and disadvantages ofFinance Insurance and it’s operation. In the next place, I make a pectination to theregulation theories and seek a proper theory to guide us identifying and regulatingFinance Reinsurance. The main three regulation theories are Public Interest Theory,Capture Theory of Regulation and Incentive Theory of Regulation. Combing with thedistinguishing feature in finance insurance, I selected one or more theories for theoryguiding practice. Newly, the paper introduces regulation mode in Britain and theUnited States, Singapore and other countries and Taiwan area. And then this papersummarized its regulatory objectives and principles and the regulatory ways ofFinance Reinsurance which drawing lessons from other countries, including themethods of identification for finance reinsurance, the significance of risk transfer, theclassification of risk transfer，qualification examination of qualified reinsurers&reinsurer brokers and proper information disclosure. Finally, after establishing itsregulatory objectives and principles, this paper also puts forward the qualitative andquantitative determination methods, combining the classification regulation and process supervision, attempts to construct financial reinsurance identification andregulation system of our country.