The Research On Benefit Protection Of Insurant Under Shareholder Governance

Resuming operation in the insurance industry since 1978,the insurance industry showed a trend of rapid growth.Insurance industry shoulders the responsibility for the security of the whole society in our country,and also plays a very important role to our country's economic stability.However,many related literature show that our country insurance company's shareholding structure concentrated,special ownership structure determines that the major problems of insurance company governance is the issue between company's biggest shareholder and the insurance company policyholder.The interests of policyholders protection is not only the aim of the international insurance industry,but also a key areas the governments should give attention to.Policyholder is a mainstay in the development of national insurance industry,without their supports,the insurance industry develops difficultly.Therefore,how to safeguard the interests of the policyholder and how to get their support for the development of the insurance industry,is a main research topic in the theory and practice.This paper combed the research of the domestic and foreign scholars on relationship between ownership structure and corporate performance and value,and studies the relation between ownership structure and policyholder interest protection of the insurance companies in our country,and describes the status quo of our country insurance company's shareholder governance and its solvency,finally the paper empirically researches on relations between the ownership concentration,the nature of the biggest shareholder and the degree of protection on the interest of policyholder.Based on a total of 239 survey data as the research sample in the insurance companies from 2009 to 2011 of China,and from the perspective of policyholders benefit protection,the paper selects insurance company solvency to measure its policy holders benefit protection level,using the weighted least-squares regression method(WLS)tests the relations between the equity concentration,the nature of the biggest shareholder and the degree of protection on the interest of policy-holder.Finally,adopting the method of least absolute deviation to test the robustness of sample data.The empirical results show that:(1)the equity of the insurance companies in our country are concentrated;(2)the more concentrated in the equity of the insurance companies,the better to its solvency and the better degree on policyholder benefit protection;the more dispersed in the equity,the weaker to the solvency and the lower level of policyholder benefit protection degree;(3)the biggest shareholder of state-owned insurance companies,its solvency is superior to the non-state-owned holding insurance companies,namely state-owned insurance company policy-holder insurance benefit protection degree is better than the non-state-owned holding companies.On the basis of empirical analysis,the paper puts forward to some suggestions to improving the protection degree of the interest of the policyholder:(1)Increase ownership concentration properly in insurance company;(2)Responding positively to the trend of equity diversification in insurance company;(3)Improving our country insurance company information disclosure mechanism;(4)Perfecting relevant laws and regulations about our country insurance company.Finally,this paper summarized the disadvantages of the study.