Research On Internal Control For Chinese Insurance Companies

Since the last decade, internal control has become a key concern, as insurance activities become ever riskier and more complex. Because of the importance of internal control to insurance companies, this paper does researches on how to strengthen it.Firstly, This paper introduces the theory of internal control. It includes not only international theories, but also how meaningful the internal control is. Insurance companies need to strengthen internal control in order to accomplish the objectives of the companies.Secondly, it introduces some Chinese rules about internal control according to time. Although the internal control has been founded and developed in most of Chinese insurance companies nowadays, its weakness is still obvious. In order to find the reason of the weakness, this paper does analyze. And the conclusion is that governance structure, human resource, organization structure, internal audit and supervision maybe the reason.Thirdly, it discusses how those factors influence the internal control of Chinese insurance companies.Then, it introduces the experience of foreign companies because China's insurance companies should draw lessons from successful experience of foreign insurance companies.Finally, the author gives proposals that should be applied in Chinese insurance companies, such as "strengthen governance structure" and so on.In short, the most important reform involves internal control, which should serve as a good reference for the perfection of internal control for China's insurance companies.