Research On The Risk Of Viatical Settlement And Its Prevention And Control

Viatical settlement originated in the United States in the 1990 s.At present,the United States,Britain,Germany,Japan,Australia and other developed countries have established the viatical settlement market.As China Insurance Regulatory Commission promulgated the "Personal Insurance viatical settlement Business Pilot Management Measures"(Draft for Opinions),China's viatical settlement pilot is gradually approaching.As a financial innovation product,viatical settlement plays an important role in alleviating the economic difficulties of specific groups of people and their families,reducing the refund rate of life insurance companies,and enriching financial market investment products.There are a series of risks in viatical settlement,such as moral hazard,credit risk,liquidity risk,interest rate risk,product risk and structural risk of securities.Developed countries usually take measures to prevent and control viatical settlement risk,such as improving laws and regulations,standardizing pricing process and strengthening supervision.From the perspective of demand and supply,it is necessary and feasible to carry out the pilot viatical settlement in China.Due to the imperfect laws,the lack of strict financial supervision,the lagging development of relevant institutions,the uneven quality of relevant practitioners and the lack of social integrity,the risks of viatical settlement in China,especially the moral and credit risks,may become more prominent.China should adhere to the three principles of "clear responsibilities","prudence" and "comprehensive prevention and control".Through improving relevant laws and regulations,strengthening financial supervision,cultivating relevant supporting institutions,strengthening the training of high-quality practitioners and strengthening the construction of integrity,we should build a risk prevention and control system of viatical settlement with Chinese characteristics,so as to promote the stability and standardization of viatical settlement in China.And sustainable development.