China’s Insurance Industry Risk Prevention System Research

The outbreak of the financial crisis has brought severe impact to all countries in theworld, which causes people’s further thinking on the financial regulatory mode. In thepost-crisis era, all countries are actively promoting innovation in financial regulation,among which the most important part is systemic risk regulation, with the purpose tocreate a new order on international economic development. With the constantdevelopment of the insurance industry, this kind of "non deposit financial institutions"has a higher position not only in the financial system, but also in the whole economicoperation system. Today, the opening degree of china’s insurance industry is increasingand the degree of mercerization is also improving. These factors have intensifiedcompetition in the market and have brought more uncertainty to insurance industry ofchina. Therefore, raising the level of risk management in insurance industry, especiallythe level of systemic risk management, has become one of the important subjects for thewhole insurance industry.Currently, the study of systemic risk, both domestic and abroad, is mainly onbanking business and capital market, or the whole financial system, but merely oninsurance industry. This article takes the example of European and American insurancesystemic risk prevention mechanic, and establishes China’s insurance systemic riskwarning index system. It can help identify insurance risk level, and make insurancecompanies and regulators deal with the risks in time.This thesis is divided into four parts altogether. The first part focuses on thechallenges, brought by financial crisis, to the insurance systemic risk preventionmechanism. It provides a realistic necessity for the study of this article; The second partdiscusses the current situation of China’s insurance industry systemic risk and itsprevention mechanism, which provides a factual basis for the improvement of China’sinsurance industry systemic risk prevention mechanisms; The third part takes theexample of Europe and the United States, to illustrate the foreign insurance systemicrisk prevention mechanism, which provides the basis for the Improvement of systemicrisk insurance mechanisms; The fourth part establishes China’s insurance industry riskwarning indicator system,from both financial point of view and "non-financial point of view". It can provide us a method to judge the situation of china’s insurance industry andhelp improve China’s insurance industry systemic risk prevention mechanism.