On The Development Of Chinese Loss Adjusters

As one kind of intermediary organs, loss adjusters play an unique role in insurance market. Loss adjusters, together with insurance brokers and insurance agents, form the complete main bodies of insurance intermediaries. Develop loss adjusters with great effort and consummate insurance market, are the inner urge of the development of our insurance industry.Depart from the perspective of division of labor, this thesis analyze the issue of the development of our loss adjusters with the theory of specialization and division of labor.The originator of economics, Adam Smith, was of the opinion that division of labor and specialization would improve the efficiency of labor, and division of labor root in the propensity of exchange, Smith also pointed out that division of labor is limited by the scale of market. After investigation of capitalist production process, Marx indicated in Capital that division of labor and specialization could increase the productivity of labor, he also distinguish the division of labor inside the workshop and that inside the society. Allyn Young inherited and developed Smith's theory on division of labor, and put forward three propositions, which were called Young's propositions: increasing return derives from division of labor and specialization; the degree of division of labor is determined by the scale of market, and the market is restricted by the division of labor; demand and supply are the two sides of division of labor. The New classical Economics with its representative personage Yang absorb the old ideas of Smith and Young on division of labor and specialization, and revive their ideas perfectly in mathematics. Starring with the level and degree of specialization, New classical economics educes demand and supply so that the analysis of demand and supply involve the issue of resource allocation as well as the issue of economic organizations. New classical economics pointed that during the process of market's adjusting division of labor, the most important conflict is the conflict between the economies of specialization and transaction cost, however, the conflict is influenced by the efficiency of transaction.After the induction and carding of the evolution of theory of division of labor, the thesis analyzes the level of division of labor of Chinese loss adjusters. Specialization and division of labor are two closely related concepts, we can't study division of laborwithout the study of specialization. Therefore, this part explains the meaning of division of labor and specialization at first and indicates the relationship between these two concepts further. Next the thesis analyzes the present situation of Chinese loss adjusters, indicating that both the level of specialization and the degree of division of labor are low is the main characteristic of Chinese loss adjusters on the stage. We can get this conclusion from such representations: on one hand, insurance companies rely on their own employers to settle claims, the loss adjusting fee is low and the role of loss adjusters among the industry is far from important; on the other hand, Chinese loss adjusters are very week themselves with deficiency of professionals and technical superiority, and there are problems in their operating ideas. What caused the situation of Chinese loss adjusters? According to Smith theorem, it is the small scale of Chinese market that lead to the low level of division of labor and specialization of Chinese loss adjusters. In the long run, with the reform of managing systems of Chinese insurance companies, the enlargement of Chinese opening and the increasing acceptance of loss adjusters in the society, the market scale of Chinese loss adjusters industry will enlarge gradually, which will finally prompt the level of division of labor of Chinese loss adjusters.The third part investigates the evolution of division of labor of Chinese loss adjusters. It studies the history of the occurrence and development of market intermediaries, and studies the history of the occurrence and development of loss adjusters as a kind of insurance market intermediaries in succession, then points out that the demand for specialized settlement of claims resulted from more and more complicated settlement of claims is the direct impetus of the occurrence and development of loss adjusters. According to the New classical economics we know that the evolution of division of labor is the result of the conflict between economies of specialization and transaction cost, as a result, to improve the level of division of labor of Chinese loss adjusters, we have to improve the transaction efficiency of Chinese loss adjusters industry, including endogenous transaction efficiency such professionals and techniques of loss adjusters and exogenous transaction efficiency such as laws and legislations related to loss adjusters.The final part discusses the cooperation between Chinese loss adjusters and insurance companies. Division of labor and cooperation are supplement each other.Without division of labor, there is no cooperation; without cooperation, the function of division of labor can't play well. According to the experience of the cooperation between loss adjusters and insurance companies in developed countries and areas, loss adjusters cooperate with insurance companies in a wide area such as underwriting, settling claims, loss prevention, dealing with salvage value, inspecting stowage and consulting, etc. However, in China, there exist many problems in the cooperation between loss adjusters and insurance companies, for example, the insurance companies don't trust in the loss adjusters, and the loss adjusters have problems in their techniques, fairness and normative. How to advance the cooperation between loss adjusters and insurance companies in China? The end of the thesis demonstrates it with a case of the win-win cooperation between Min Tai An loss adjusters Co., Ltd. and China Pacific Insurance Co., Ltd. Shenzhen branch.