The Risk Spillover Mechanism Of Insurance Agency's Business Innovation In China And Prudential Regulation Research

After 2008's global financial crisis,Western developed countries generally find micro-prudential regulation based on individual cannot fully guarantee the stability of the financial system,especially the AfG nearly collapsed in the crisis,insurance which normally be considered very safe and stable has been widely conceemed,insurance industry whether trigger a systemic risk caused a wide range of academic discussion.How to define the risk spillover mechanism of insurance institutions,explore insurance institutions' risk spillover and how to make must-to-solve problem of insurance regulation in current China.The article's research target is the insurance agency business innovation risk spillover mechanism in China,based on the case analysis of Foresea Life Insurance.In order to found the insufficient of macro-prudential regulation in the insurance industry,and reference the successful experiences of developed country to make the corresponding policy recommendations.Through literature analysis method,this article found that the Chinese and foreign literature exist objections in the presence of systemic risk spillover of the insurance industry,but the overflow of risk for a single agency is certain.With the financial development,the mutual penetration and integration of banks,securities,as well as insurances.The risk spillover of individual insurance institutions is likely to spread to other financial industries.Through the analysis of the Foresea Life Insurance event,found that the innovation of insurance agency business focused on Investment linked insurance and participating insurance at present stage in China,the most distinguishing feature of this product is the function of investment.Insurance institutions use the premium income to invest in securities,funds and other financial markets with high-risk high-yield,increased the insurance business innovation overflow of risk with no doubt.In order to further explore the prudential supervision in the insurance industry,this article compared the United States,Japan,Germany,the UK insurance industry regulatory framework.Through the contrast the prudential regulation of insurance industry between China and western developed countries,which can be found is that the insurance industry in our country has not formed a complete macro-prudential regulation framework.Based on China's economic development background and the present macro-prudential development planning,to analyze the basic characteristics of China's insurance industry and the potential risk.Analysis risk spillover mechanism of innovative insurance products and insurance industry,through analyzing the real cases in the insurance industry,found that the lack of prudential regulation in insurance in our country,policy suggestions are put forward in this article at the three aspects such as changing regulations,clearing regulatory body;detailing regulatory indicators,strengthening information disclosure;perfecting regulation tools,strengthening the system construction.