Research On The Development Of Director's Liability Insurance In China

Director Liability Insurance is a policy designed specifically for directors and senior managers of companies with operational decision-making power,enabling directors and senior managers to face complex and diverse risks of business liability in the performance of their duties.This is because directors and senior managers have a relatively large influence on the company's business decisions,which may result in the company's operation due to personal misjudgment,negligent misconduct resulting in losses or stock market performance collapse,and a third party is required to bear the liability for loss compensation.Director's liability insurance originated in the Great Depression of 1929,after nearly90 years of development,director's liability insurance has become more mature and perfect,has developed into an indispensable insurance system in developed countries in Europe and the United States an indispensable and important insurance.Director's liability insurance has 18 years of development history in China,however,from the current domestic market only about 8% of the insurance rate,director's liability insurance in China's development rate appears to be very slow,with the current rapid development of the capital market is not matched,its role in the domestic capital market is limited,The role of risk diversification and investor protection can not be fully exploited.In the context of more and more companies listing on the SSE STAR Market,the pilot promotion of the registration system of listed companies,and the continuous optimization and reform of the securities base system,there will be more companies with potential for development to choose to list for stock trading.With the improvement of the domestic securities market,some foreign listed companies will also choose to return to domestic listing.On the one hand,the number of listed companies increases,the number of potential buyers of director's liability insurance is increasing,on the other hand,the requirements of information disclosure in the new Securities Law have also increased,which means that listed companies are more likely to be subject to administrative penalties for information disclosure violations and insider trading.In this paper,combined with the listed companies of SSE STAR Market to disperse the management risks of directors and senior managers in the process of operation,butalso to protect the legitimate rights and interests of securities investors,so they have to buy the case of director liability insurance,Based on the specific situation of science and technology board to analyze the reasons for the purchase of director's liability insurance and the positive role of purchasing director's liability insurance,through the study of the development of director's liability insurance,the current director's liability insurance in practice to summarize the shortcomings,from the institutional environment,Corporate governance and product design and other aspects of the director's liability insurance improvement analysis,summary of the lack of experience,try to provide effective advice on how to cultivate the current situation in line with China's capital market and insurance industry.