On The Perfection Of The Legal System Of Insurance Guarantee Fund Raising

Since the establishment of the insurance guarantee fund system in 1995,China has been implementing the fund management system of prior collection and unified dispatch.Though the "insurance law" in 2009 and 2008 of the insurance guarantee fund management approach "again to fund raising,management and use the rules,but the rule is too" general ",especially to raise system of the provisions of the lack of scientific and rigour,cause in the process of security funds raising,need to guarantee the efficiency of funds,and fairness of fund raising and the funds raised by the security conflict.China currently maintains a 100 billion insurance guarantee fund to face the risk pressure brought by the huge market of 4 trillion yuan of premium income.The way of raising this fund and the scale of the fund are related to the balance of efficiency and security.Our country law sets,by insurance safeguard fund company raises fund lawfully according to the way that raises money to add fixed rate beforehand from insurance company raise money.The method of raising funds after the event means that the bankrupt insurance company evades the obligation of paying funds,which is unfair to the surviving insurance company and easy to breed moral hazard.However,it is not possible for all companies to evade the obligation to pay fees in advance,so it is fair and reasonable to prevent moral hazard.However,under the condition of pre-raising,excessive fund raising will bring excessive fund pressure to insurance companies,and it is also easy to cause idle waste of funds and possible misuse of funds.Therefore,the upper limit of fund raising should be set on the premise of maintaining the operation efficiency of insurance guarantee fund and matching risks,so as to keep the fund at a relatively reasonable scale.Once the continuous bankruptcy of an insurance company results in the failure of maintaining the fund scale to meet the needs,emergency financing channels can be established through legal provisions: raising funds from the insurance company,the government,the public and other ways to deal with the crisis.The conflict between efficiency and safety,efficiency and fairness of fund raising can be alleviated by improving the rate system.The current fixed-rate legislation in China fails to distinguish the business risks of insurance companies.Insurance companies with different business natures and different risks,or with the same nature but different business orientations and different risks,shall pay the same rate according to the law.The result is that prudent insurers subsidize high-risk insurers,which is unfair to prudent insurers.Due to information asymmetry,insurance companies may conceal their operational risks.Even if they launch high-risk insurance products,they will only have to pay the same rate as other insurance companies to raise funds,which reduces the cost that insurance companies need to bear for high-risk operations and eventually leads to thephenomenon that bad money drives out good money.Different from the fixed rate,the risk rate requires insurance companies to classify risks and apply different rates according to different risk levels.This action can reflect the overall risk of the insurance industry and the advantages and disadvantages of individual insurance companies in risk management.It not only conforms to the principle of fairness of the insurance law,but also can supervise insurance companies to control business risks.However,China is still unable to fully achieve the insurance companies to set precise fundraising rates.Therefore,the differential risk premium rate should be implemented,and the premium rate should be adjusted according to the risk of the insurance company on the basis of the previous benchmark rate.