Research On The Operation Mechanism Of Guarantee Insurance For Small And Medium-Sized Enterprises’ Loan

With the development of economic globalization, small and medium-sized enterprises have become the worldwide problems, and the governments have realized the important role of small and medium-sized enterprises in economic development. Japan attaches importance to the development of small and medium-sized enterprises in particular. As the small and medium-sized enterprises are numerous, Japanese government provides a lot of support in law, policy and funding in order to promote the development of them. In recent years, small and medium-sized enterprises develop quickly in our country, promoting the development of market economy and social stability. On the one hand, small and medium-sized enterprises provide a good external environment for the transformation of large enterprises. On the other hand, the small and medium-sized enterprises can solve the employment problem of our country effectively. The role of the small and medium-sized enterprises is indisputable. But the emphasis on the small and medium-sized enterprises is not enough, especially in the area of fund-raising. Financing problems seriously restrict the development of small and medium-sized enterprises.There are two kinds of financing ways-endogenous financing and external financing. At the beginning of the enterprises start-up, endogenous financing is the main way of financing. With the development of the scale, enterprises need the assistance from external power to raise funds. Under the condition of financial markets is not perfect in our country, it is difficult for small and medium-sized enterprises to raise funds directly through equity financing and debt financing. Bank advance is almost the only way to raise money for small and medium-sized enterprises, but small business loan is a big problem in our country. In order to solve this problem, many countries set up the guarantee system for small and medium-sized enterprises. The Japanese government set up the public insurance library responsible for loan problems of small and medium-sized enterprises. The US chooses the way of the commercialization, and many insurance companies have started the loan guarantee insurance for the small and medium-sized enterprises. Judging from conducting of other countries, loan guarantee insurance has a tendency to market-oriented operation. Anbang and Pacific insurance company have piloted the loan guarantee insurance in some parts of our country. But due to the loan guarantee insurance is still in the pilot stage, so our country has not established a perfect operation mechanism, which seriously affects the development of the loan guarantee insurance. So this paper will study how to set up and improve the operation mechanism of loan guarantee insurance for small and medium-sized enterprises with foreign successful experience.Through the study of foreign guarantee insurance for small and medium-sized enterprises’loan, the process is as follows:enterprises apply for guarantee to insurance institutions, insurance institutions review to the enterprises and sign the contract, the insurance company apply for reinsurance, remove the insurance liability and recover the debt. There are several problems of operation mechanism in our country in the following several aspects:the ability to manage risk of insurance companies is insufficient, no reasonable pricing method, imperfect laws, lax supervision and lack of government investment. This paper study how to improve the operation mechanism of guarantee insurance for small and medium-sized enterprises’loan. Because the pricing problem is the most important and difficult problem in practice for the insurance company, so this paper will study the pricing mechanism in the fifth part.The study on pricing methods of guarantee insurance for small and medium-sized enterprises’loan are more focus on the theory, so the operability is not strong. This article study the pricing on the loss expectancy theory and the risk measurement model based on the problem of insufficient data in our country. The model need credit rating for the small and medium-sized enterprises. Generally speaking, the pricing method is reasonable.The guarantee insurance for small and medium-sized enterprises’loan is still in the beginning stage in our country, so there are a lot of problems in the operation mechanism. In order to promote the development of it, our country must improve the operation mechanism. On the one hand, it needs the supply of laws, policies and funding from the government. On the other hand, insurance companies need to improve the level of risk management.