On The Perfection Of Chinese Insurance Regulatory Institution Under The Full Opening Circumstances

More than three years have passed since China join the WTO, the opening of Chinese insurance industry is amplified Chinese insurance industry experienced great changes, the number of market subject increased, competition strengthened, and the industry grew rapidly. Chinese insurance regulatory institution witnessed great changes with the speedy changes of circumstances, the solvency regulation has been strengthened. Under the full opening circumstances, Chinese insurance regulatory still has shortcomings. The paper discusses the perfection of Chinese insurance regulatory institution utilizing the new institutional economics, mainly from institutional composition and institutional innovation.Firstly the paper introduces the background of American, British and Chinese insurance regulatory institution. Secondly the current insurance regulatory institutions of the three countries mention above are introduced. Thirdly, it presents fundamental principles of WTO, the insurance core principles and the perfection of Chinese insurance regulatory institutions.The purpose is to point out the specific countermeasure of the perfection of Chinese insurance regulatory institutions. After analysizing the supply of and demand for the institution, and equilibrium of institution, the paper points out that those institutions which are surplus should be eliminated and those which are insufficient should be produced. The perfection of formal institutions includes strengthening commercial reinsurance regulation, setting up RBC etc. And the perfection of the enforcement mechanism, includes establishing information system, setting up the statutory accounting principles, completing information disclosure, and establishing regulatory balancing mechanism etc.The analytical methodology is qualitative analysis as well as comparative analysis. Comparative analysis, includes the comparison between different countries and the comparison among China in different phases. By comparative analysis we can make the process of the perfection of the insurance regulatory institutions smoother.