The Housing Credit Insurance System In Our Country

With the deepening of Reform of China’s Housing System, enthusiasm of purchasing a house of Chinese residents has risen. Thanks to the housing credit which has not only sped up the process of housing reform, then promoted the sales of commercial housing, but also sped up the construction of commercial housing, then invigorated real estate market. At the same time, it also guided the consumer, then made a significant contribution to economic growth by improving the living level of the residents. However, ancillary housing credit insurance system has not been established, current housing situation of credit insurance doesn’t adapt to the housing credit development. In1997, while the Asian financial crisis led to the bad debt rate of70%-85%per cent of Japan’s "Housing finance company". Ever since the United States of the subprime crisis in2007, the United States a large number of banks and other financial institutions collapsed, so the housing credit risk is obvious and risks are enormous. Therefore, how to design a kind of housing credit insurance system which adapts to the conditions of China to reduce and solve housing credit risk.This article addresses the theory and factual significance of establishment and improvement of my housing credit system at first. By sorting out the related literature both at home and abroad on housing credit insurance system, this article explains the related housing credit risk and insurance and analyzes current condition of housing credit market and guarantees status. Then come up with the framework and policy recommendations of housing credit insurance system basing on the analysis of housing credit insurance market status and reference of the abroad expenence.The main points of this paper:with the deepening of reform of the housing system and the urbanization process in China, there exists great conflict of Chinese residents’housing system. Therefore the demand for housing loans will still be in need. Housing credit insurance is indispensable in protecting housing credits, so only by establishing a complete system of housing credit insurance can effectively disperse and transfer housing credit risk. Housing credit insurance system of our country should be composed by commercial credit insurance system and political housing credit insurance system. For this reason, we should establish the policy-housing credit insurance institutions. The unhealthy condition of the housing credit insurance market in China exists for various reasons, residents’poor awareness of insurance, the impact on urban housing house buyers warranty Corporation, but needs to own hard beat and, more importantly, are insurance company products, services are not in place, to this end, the insurance companies should strengthen its efforts to develop residents’house buying demand credit insurance. From consumers, banks, insurance companies, third party design in terms of the win-win loan, housing credit insurance market will certainly be able to do, and continue. Due to the urban warranty Corporation, off-standard products and services of the housing credit insurance, which is more important. For this reason, we should pose more strength on developing insurance products. Designing debt products should take the interests of consumers, banks and insurance companies to ensure the sustainable development of housing insurance market. What’s more, we should pay more attention to the products innovation. This paper recommends insurance companies designing some product which could increase insurance credit for consumers, they could also set foot in reverse mortgages for older persons. Housing credit insurance system in China still shoulders heavy responsibilities. We need to establish and improve housing credit insurance-related laws and regulations, improve the awareness of public participation in housing credit insurance; perfect this industry all around; create insurance marketing mode, continue to gather talents, and improve the quality of insurance practitioners.