Study On The Problem Of The Insurance Broking Institution In China

As we all know, it's essential for a perfect and developed insurance market to include the participation of insurance intermediary besides the main two market subject: insurer and insured/assured. Development and perfection of the insurance intermediary market in one country is not only an important sign of ripe degree of its insurance market, but also an important standard to weigh the development level of its insurance industry. As an important part of the insurance intermediary market, appearance of the insurance broker has broken the original interest mode of insurance market, increased the important of the insured and gradually motivated insurance market to attain balance. Therefore, the insurance broker is an important part of insurance market.However, the well-noticed insurance broker has not developed smoothly as imagined and played its due role in the realistic insurance market. On the contrary, a series of problems, such as a slow development of the insurance broker market, variations of the insurance broker and whether our insurance broker market can depend on the participation of foreign-capitalized insurance broker company to accelerate its development, has appeared. As a matter of fact, our experience has proved the following: establishing the insurance broke institution matched by our country's realistic conditions and efficient executive regulation is directly related to the continuous development of our insurance industry, and it's also an important subject for theoretical research on the development of our insurance market.This paper mainly discusses the problem faced by Chinese insurance broking institution today, and some suggestions for solving the problem are presented. Firstly, theory of middle-layer manufactory, new institutional economy and information economy are introduced, which provide theoretical basis for the presence of insurance broker. Secondly, we present the insurance broking institution in other countries and ,which provide experience for the establishment the development of Chinese insurance broking institution and the solution of problem. Thirdly, we propose the problem from the history and present situation of Chinese insurance broking institution. Fourthly, the reason for the problem in insurance broking market is analyzed from theview of insurance broking institution. Finally, some solutions are suggested. The author of this paper makes the following tries:(1) Introduce middle-layer organization and manufactory theory to analyze the rationality for the presence of insurance broking institution. In the past the insurance researchers generally take institution economy and information economy as theoretical basis besides the above two theories. This paper introduces middle-layer organization and manufactory theory which mainly deals with two questions: why the manufactory present and how to realize the marker equilibrium with its presence. Compared with institution economy and information economy, the theory deliberately dwells on the advantage of middle-layer organization, which includes decreasing transaction cost collecting risk decreasing seeking and matching cosU constraining adverse selection and promoting the two parties to keep promise.(2) Propose mutation of insurance brokers. The mutation mainly includes three parts: Firstly, mutation in form. Payment for insurance broker can only be given in the form of commission because of the shortcoming of insurance regulation, then the insurance consultation company takes place who is paid for providing clients with suggestion about risk management and charging for it. In foreign countries, the service above is actually a kind of services provided by insurance broker company, and insurance consultation company is only a mutation form of insurance broker company. Secondly, mutation in standpoint. Form the law of insurance we know that insurance brokers stand by the interest of the insured. But the fact that some insurance companies deal with insurance broker company changes the standpoint of insurance broker company.