Research On Mutual Insurance Company And Its Feasibility And Development Strategy In China

Currently, the organizational forms of China's insurance company are relatively single, joint-stock insurance company, as a main organizational form of China's insurance sector, has been unable to satisfy the objective needs of China's various economic systems at this stage, regional imbalances of economic development and different risk factors on the insurance industry, hampers the insurance innovation, and isn't conducive to the sustained development of the insurance industry. Mutual insurance company, as a specific business organizational form of insurance industry, has highly competitive and comparative advantages in international insurance market. It can not only reduce the premium expenses, but also reduce information asymmetry in the insurance market, so it's in a pivotal position in international insurance market. However, does the development of mutual insurance company has necessity and feasibility in China? What are obstacles in its development? How to formulate development strategies? The study and solution of these questions has become an urgent issue in the development of China's insurance sector.On the basis of comprehensively and systematically theoretical analysis of the characteristics and advantages of mutual insurance company, this paper inspects the practices of foreign mutual insurance company's development, and in conjunction with the actuality of development of China's insurance industry, analyzes the necessity and feasibility of the development of mutual insurance company in China, on this basis, establishes development strategies of mutual insurance company in China.This paper is divided into three chapters, the basic contents are as follows:Chapter I is the basic theory of mutual insurance company. First of all, expound the concept, types and characteristics of mutual insurance company. Define mutual insurance company: Mutual insurance company is a kind of non-profit corporate organization, which is owned by the policyholders and based on the principle of mutual protection. Expound three forms of mutual insurance company, namely, mutual insurance company in advance of the premium, mutual insurance company sharing the premium, and mutual insurance company of permanent premium. Analyze the characteristics of mutual insurance company, including: not for profit; members have dual identity of both the insured and the insurer; timely payment of insurance premiums, but only have limited liability. Second, analyze the distinction between joint-stock insurance company and mutual insurance company, and the conversion between them. Analyze the distinction between joint-stock insurance company and mutual insurance company, including the distinction of organizational form, corporate governance structure and consistence of interest of corporate operators and company owners. Expound the conversion between joint-stock insurance company and mutual insurance company, and analyze the reasons for conversion. Finally, analyze the advantages of mutual insurance company from the economics view. Analyze by model: the existence of mutual insurance company can't reduce social risk, but it can enhance each member's effectiveness of expectations under the risk-sharing mechanism; analyze by economic theory: Mutual insurance company can reduce insurance agency cost, earnestly safeguard the interests of the insured, and have special advantages in some specific areas.Chapter II is the development of foreign mutual insurance companies.First, recall the course of development of foreign mutual insurance companies on the whole. The establishment of London fair insurance company in 1756, marks the formation of modern mutual insurance system. In the early 20th century, joint-stock insurance company's weakness gradually exposed, and mutual insurance company had been more recognition of the public, joint-stock insurance company began to convert into mutual insurance company. The late 1990s, with the rapid development of the capital market, because of mutual insurance company's limited capacity of using the capitalmarket, there was demutualization wave in international insurance market. Secondly, specifically introduce the development of mutual insurance company in United States and Japan. Finally, on the analysis of the development of foreign mutual insurance company, we have the following revelation: a correct understanding of the international demutualization of mutual insurance company; mutual insurance company is one of the main organization forms for the insurance industry from the initial stage to mature prosperity; the business scale is an important factor which affects whether mutual insurance company's institutional strengths can play.Chapter III is the necessity, feasibility and strategies of the development of China's mutual insurance company, which is the core of this paper. First, analyze the necessity of the development of mutual insurance company in China, and in light of the status quo of China's mutual insurance practices, analyzes the feasibility of mutual insurance company. Necessity includes: the objective needs of China's regional differences; increase the effective supply of the insurance market; promote the diversification of insurance entities; promote civic awareness of insurance; provide insurance protection for low-income groups; promote the internationalization of insurance industry. Feasibility includes: mutual insurance company has the growth of soil in China; China's insurance management has some experience and technology; China's mutual insurance regulatory has certain conditions; industry-specific mutual insurance organizations have a certain social basis in China. Second, analyze the obstacles to the development of mutual insurance company, including: the absence of laws is the largest obstacle to the development of mutual insurance; there is a certain degree of misunderstanding on the recognization of mutual insurance company; there is a certain degree of difficulty in the operation of mutual insurance company. Finally, learning from the development experience of mutual insurance company of Western developed countries, and in accordance with the current situation of development of China's insurance industry, put forward the strategies of the developmet of China's mutual insurance company, including: Locate mutual insurance company, the development of mutual insurance company in China is not to replace the mainstream status of joint-stock insurance company in China's insurance industry, and mutual insurance company is only the supplement and perfectness of the mainstay of China's insurance market; In light of the status quo of China's urban and rural insurance market, propose the idea of introduction of mutual insurance company in China's rural insurance market by the first; Put forward policy proposals of the development of mutual insurance company in China, including: revise and improve relevant legal systems, give certain preferential policies to mutual insurance company, strengthen the research on mutual insurance company, strengthen mutual insurance company's publicity, train related professionals.