Research On Internal Control Appraisal Of China’s Listed Insurance Companies Based On The Analytic Hierarchy Process

The internal control is the supervision of enterprises’ operation and management, efficient internalcontrol can control and prevent the risk of management and administration, enhance the quality ofaccounting information, reduce the occurrence of financial fraud. The insurance company is an importantparticipant of capital market, maintaining the lifeblood of development of economics, the risk requirementsof management are higher than other industries, facing the increasingly fierce competition insurance market,it is necessary to improve the internal control system. At the same time in order to avoid the internal controlsystem of insurance company becomes a mere formality, we will still need to strengthen the evaluation ofexecution and effect of internal control.For the evaluation of internal control of insurance companies, in China "internal control evaluationmeasures of life insurance company (Trial)" and "evaluation guidelines of internal control "were issued tomake up for the vacancy, on the basis, this paper listes on the four insurance companies of China’s A sharesas the research object, analyzes the present situation of four listed insurance companies and the existingproblems on internal control evaluation, uses the AHP structuring index system of the insurance companyinternal control evaluation, fuzzily evaluates the efficacy of four insurance companies’ internal control, putsforward some suggestions for the effective internal control evaluation of the insurance industry.The paper is divided into five parts:The first part introduces the background and significance of this study, respectively, status the studyresearch on the internal control evaluation, method of internal control evaluation, internal controlevaluation of insurance at home and abroad, points out the innovation of this paper.The second part introduces the concept of internal control and internal control evaluation concisely,reviews and discusses the theoretical basis of internal control evaluation.The third part collects the corporate annual report of four insurance companies in2012, the report ofself evaluation, social responsibility information through the book and online, a analysis the status quo offour China’s insurance companies on internal control evaluation comparatively, dissects the existentdiversity on internal control evaluation target and rationale of China’s insurance industry, the problems thatthe important disclosure is not detailed, and lacks of evaluation method of evaluating. The fourth part is the core content, introduces the basic principle of analytic hierarchy process briefly,using the AHP on consulting with some relevant experts, designs the index system included target layer,5first level indexes and25two level indexes based on the insurance company internal control report on theevaluation. First class index are five elements in the "basic norms of internal control", there are internalenvironment, risk assessment, control activities, information and communication and supervision,25twolevel index are refined and determined by the first lever index. Determining the insurance industry weightof each level index for the constructed index system, and to ensure the consistency test. Then according tothe weight of each index, combines the evaluation set and fractional set to statistic the form of membershipmatrix, the calculated the value of their internal environment, risk assessment, control activities,information and communication and the internal supervision for four insurance companies by fuzzyevaluation, according to the first index weight finally calculates the score results of four insurance companyinternal control evaluation, the ranking is China Life Insurance, Ping An Insurance, Xinhua insurance,China Pacific Insurance. Finally, describes the rank and causes succinctly.The fifth part proposes several suggestions to perfect the evaluation of internal control of insurancecompanies from the unified the standards of internal control deficiencies and disclosure for insurancecompany, strengthen the internal control and external supervision for the insurance industry...