The Credit Rating Agency Professional Liability Insurance Legal System Research

The credit rating as the system has been around for a century, the development ofthe global capital market, credit market has very important significance. Credit ratingagencies as an objective, fair andindependent intermediary service organization, goodsolve the problem of the financial market information asymmetry, objective andcorrect credit rating report to reduce the cost of financing of the issuer, reduce theinvestment risk, investors make it together, such as accountants, lawyers, assetappraiser to become the capital market "gatekeeper", is the escort of the real economy.However, since the U.S. subprime mortgage crisis in2007, the performance of therating agencies were unprecedented, exposed the serious vulnerabilities, moral hazardand rating standard to blame its impartiality objectivity, U.S. investors caused amassive class-action lawsuits against ratings agencies. Capital market is an enormousamount of gains and losses are often, court once the rating agencies bear civil liabilityto pay compensation, huge rating agencies will be lost, or even go bankrupt. Damageto the investors’ losses if can not get full compensation, will seriously affect theinterests of the investors, reduce the enthusiasm of investment in capital market.Rating agencies in China development is slow, weak, small money, there is no facemassive group litigation risk, a rating agency, but it is necessary to find a relief system,makes the rating agencies could face huge civil compensation risks are scattered anddigestion, truly "for a rainy day". Professional liability insurance system as an effective system to spread the riskof professional career has such as certified public accountants, lawyers and otherprofessional business areas to implement and applicable. Covered by insuranceagainst liability for professional help to disperse professionals due to the fault ofothers’ loss which is caused by occupational activities should bear the liability forcompensation, there is no credit rating industry in China of professional liabilitycoverage, the author, the credit rating agency study the characteristics of the civilliability and professional liability insurance, in order to lead this insurance system tothe credit rating industry. Hope to groundbreaking construct in our country, the creditrating agency, professional liability insurance system, and thus the full text is dividedinto four most:The first chapter is the credit rating agency shall bear civil liability to paycompensation. Mainly introduced the US subprime mortgage crisis after the ratingagencies began to bear civil liability, civil liability reasons, ways, and analyzes therating agency huge compensation responsibility to the negative influence of relatedsubject.The second chapter raises relief agencies shall bear civil liability to paycompensation method, namely the professional liability insurance system. Introducethe definition of the liability insurance system and professional liability coverage, andemphatically analyzes the introduction of professional liability insurance to distractthe credit rating agency, civil liability to pay compensation value significance.The third chapter introduces the nature and the credit rating agency similar toaccountants, lawyers, professional liability insurance system. Demonstrates thecommonality between the three, the paper analyzes the certified public accountants,lawyers, professional liability insurance of credit rating industry reference.The fourth chapter puts forward to build the credit rating agency, professionalliability insurance system in China. That is in accordance with the terms of thisliability insurance theory to our country’s credit rating liability insurance systemdesign.