Research On Development Model Of Mutual Insurance

Mutual insurance organization, relative to other forms of insurance, is a more perfect form of organization, and playing a very important role in the development of the insurance industry. In the year of 2013,the total assets of global mutual insurance premium was $7.8 trillion,and the total revenue was $1.26 trillion.Providing service worldwide for amounted to 915 million people (policy holders or members).However, according to ICMIF statistics, China's mutual insurance market share was only 0.3%, far below the approximately 27% of the global average level, Mutual insurance in China is still at the very early and backward stage of development,resulting in deficient forms of insurance organizations,which will severely impede the diversification of our national insurance.On the basis of the investigation of China's insurance background and situation, it will not only be greatly significant to build the diverse forms of mutual insurance,but also have far-reaching significance for development of China's mutual insurance,through research on mutual insurance model,learning successful experience from foreign mutual insurance companies,and feasibility analysis of available forms of mutual insurance organizations in China,but also have far-reaching significance for development of China's mutual insurance industry.Firstly,those research and analysis could innovate the development model for Chinese insurance industry, and provide theoretical support for long-term of development of our mutual insurance; Secondly,China has soil suitable for the development of mutual insurance, but relatively lack of research. In-depth study of mutual insurance will be a supplement to perfect our mutual insurance system; Thirdly, strengthening the research of mutual industry model,we can break through the limitations of the existing business models of insurance, change the relatively simple forms of insurance market, so as to enhance the competitiveness of the insurance companies and insurance products, and promote the insurance market to develop in the direction of specialization, diversity, and pluralism.This paper, through theoretical analysis and empirical research, uses Case Method, Interviewing Method and Logical Analysis Method. This paper analyses and compare the differences between the present situation of mutual insurance theory,and status and successful experience of overseas mutual insurance experience, with transaction cost theory, agency cost theory, agency theory stating the development and problems of mutual insurance model in China. Meanwhile, This paper analyses applicability of mutual insurance in China, including the analysis of necessuty of mutual insurance in China's insurance industry:in order to reduce costs, solve management difficulties and solve moral hazard and adverse selection problems; and feasibility of mutual insurance model:a good social foundation, protection and support policies, management and other advantages.This paper is expected to be able to provide theoretical support for developing effective mutual insurance policies, for establishing a sound insurance organizational forms, and for developing a better Chinese insurance market environment. Research recommendations:(1) Establishing a complete legal system of insurance, complementing our existing "Insurance Law" system, filling some relevant strong supporting regulatory management systems, so as to regulate the development of mutual insurance companies. (2) Organizing distinctive regulators, enriching regulatory system, and managing corporate governance structure, membership issues such as information disclosure system of mutual insurance effectively.(3) Increasing government support to maximum preferential policies,to encourage the establishment and development of mutual insurance organizations,and more effectively protect the interests of policyholders, and thus to boost the rapid development of the mutual insurance industry. (4) Optimizing the insurance business environment, and the relevant government departments should make every effort to provide service. Embracing the creative and innovative spirit, and expanding insurance market combining with local economic characteristics. (5) Strengthening in-depth investigation and advocacy of mutual insurance, so as to make it acknowledged and accepted by public. (6) Cultivating various professional and technical insurance personnel to support mutual insurance development in China.