Empirical Research On The Role Of Independent Directors Of Insurance Companies In China

After more than 20 years of development,the development of China’s insurance industry has continued to strengthen,and it has gradually become an important part of China’s market economy.Some problems occurred.Including the protection of policyholders’interests,insurance companies’ operating losses,and management transactions.The Banking and Insurance Regulatory Commission has issued a series of laws and regulations to externally supervise insurance companies.Insurance companies are also gradually strengthening their internal governance.The internal governance of insurance companies includes shareholder governance,board governance,supervisory board governance,and executive management.This article analyzes its governance effectiveness from the perspective of the role of independent directors.Through combing the literature on the independent director system of domestic and foreign insurance companies,it is found that the relevant research on independent directors of insurance companies in China is relatively lacking,and few scholars have studied the efficiency of insurance company governance from the perspective of independent directors.In this paper,117 insurance companies including 60 property and casualty insurance companies and 57 life insurance companies were selected as samples to establish a panel data multiple regression model to study the effectiveness of independent directors from 2014 to 2018.Through theoretical analysis and empirical research,this paper finds that the proportion of independent directors in China’s insurance companies has no significant effect on the proportion of related transactions,solvency surplus,excessive investment and excessive risk-taking of insurance companies.The management background of independent directors of insurance companies has a significant negative effect on the proportion of related party transactions.Explain that the management background of independent directors can effectively inhibit related transactions of insurance companies and reduce the company’s risks.The accounting audit,insurance actuarial and financial background of independent directors of insurance companies all have a significant positive effect on solvency surplus.The master degree of an independent director of an insurance company has a significant negative effect on the proportion of connected transactions.The proportion of independent directors with a master ’s degree has a significant positive impact on the solvency surplus of insurance companies,indicating that the independent director ’s degree with a master ’s degree will help insurance companies improve their solvency.The age of independent directors has a significant positive effect on the ability to deal with excess capacity and excessive risk-taking.The proportion of female independent directors has a significant negative correlation with transitional investment,indicating that female independent directors play a corresponding role in suppressing excessive investment.In general,independent directors of insurance companies can play an effective role,but it is necessary to further improve the independent director system and strengthen the assumption of independent directors,so that the independent director system of insurance companies can fully play its due role and truly play a supervisory and consulting role.