Research On Internal Control Of Property Insurance Company In China

Property insurance companies are financial enterprises with operating risks and distribution risks.They play a decisive role in strengthening capital financing,providing insurance protection,and promoting social stability.However,when it seeks for the rapid development of its own business,it faces various risks.For example,since the end of the 20 th century,there have been seven consecutive cases of failures of insurance companies in Japan.The 2008 financial crisis also triggered the bankruptcy crisis of US insurance giant AIG.At the beginning of 2018,China's Anbang Insurance Group Co.,Ltd.,because of the original high-level management suspected of economic crimes,there were illegal operations,and was officially taken over by the China Insurance Regulatory Commission.This is not the first time that the China Insurance Regulatory Commission has taken over the insurance companies.All these moments have awakened the insurance companies to seriously treat various risks in their development and strengthen internal control.On the basis of analyzing the particularity of the property insurance company's business operations,this paper clarifies the importance of its internal control.Based on the risk management and internal control theories,according to the five elements of internal control,the current situation of the internal control of China's property insurance companies is reviewed,and the property is studied.Problems with the internal control of insurance companies.Through manual review of the internal control evaluation reports and annual reports of China People's Insurance Company,China Ping An Property Insurance Co.,Ltd.,China Tian An Property Insurance Co.,Ltd.and China Pacific Property Insurance Co.,Ltd.,and collected information on its internal controls.,Calculate the internal control comprehensive evaluation index IC,and use it as an independent variable,use ROE and ROA as dependent variables to measure the financial performance of property insurance companies,and use empirical methods to study the effectiveness of internal control.It is found that the comprehensive evaluation index of internal control of China's property insurance companies is positively correlated with financial performance,which shows that the internal control system of China's property insurance companies is conducive to the improvement of financial performance.However,it is still necessary to further optimize the ownership structure,strengthen internal process execution,and improve internal supervision.Enhance employees' internal control training and further improve internal control.