Study On Development Of Captive Insurance In China

After more than thirty years of development, China’s insurance industry has formed in the insurance industry is given priority to with a state-controlled insurance company, while commercial insurance company and sino-foreign joint venture insurance company supplemented, breaking the monopoly of state-owned insurance company’s long-term pattern. Even so, the speed of development and reform of China’s insurance market is still far behind the needs of the insured arising from the scale of development in our country and all walks of life. Especially in recent years, with the risking management of China’s large and medium-sized enterprises unprecedented consciousness enhancement, our insurance market risking transfer methods cannot meet the demand of the existing risking management, and the emergence of captives effective solution to the above problem. As a risking retention management tool, captive insurance company is an effective complement to traditional insurance market, its advantages lie in expanding coverage to save costs, reducing the tax burden on the parent company, strengthening enterprise risking management, providing the appropriate risk protection mode to medium-sized enterprises. Captive in the international insurance market has grown into a mature form of insurance, but at the beginning stage in our country, therefore, to study the current situation of the development of captive insurance company in our country and put forward effective countermeasures is extremely urgent.On the basis of predecessors’research, this paper uses literature research, comparative analysis, comparison and empirical analysis, describes the definition and scope of captive companies, at the same time, using the SWOT analysis model to analyze the development of captive insurance company in China, explaining its necessity from a few aspects such as promoting insurance model diversification, enhance the competitiveness of the insurance market, meet insurance marketing demand and so on. On the basis of in-depth analysis of captive development course in China, we learned from the experience of international captive market, captive insurance company and Cnooc insurance co., LTD. Hong Kong to found the following problems in the development of captives:the relevant domestic laws and regulations should be further improved; parent poor awareness of risking management, risking control is not perfect; our captive market and captive insurance company’s size is limited; captive talent is shortage, the service system is imperfect. Above all, it put forward the provisions of relevant laws and regulations to improve the company’s captive; relax market access mechanism, introduce tax incentives; enhance the parent level of risking management, strengthen the professional supervision of captive insurance companies; build captive talent system and improve the quality of services to protect themselves; improve captives financial management system; optimize captive-reinsurance development model, and reasonably reduce the retention risk countermeasures. I hope to take this opportunity to promote the development of China’s captive insurance company back on track.