A Research On The Perfection Of China's Insurance Withdrawal Mechanism

A mature and standards insurance market is necessarily a market with liquidity, a virtuous circle and competition. But nowadays, China has not build a complete insurance withdrawal mechanism and no company withdraw from the marker up to now. But this can't improve the risk of China's insurance is small. In fact, as the number of China's insurance company increased, the premium rate and the joint effect between the insurance business and the financial market, the change that insurance company goes bankruptcy will increased. As the insurance market has the social security function, there will be great negative influence such as panic, wealth lose if it is in low efficiency of management, goes in trouble and even goes bankruptcy. The insurance company's bankruptcy will not only bring the serious impact to the community, but also make a large number of insurance contract holders facing the threat of loss. China need to build and perfect the its insurance withdrawal mechanism, reduce insurance operation failure due to the impact of community effectively and promote China's insurance sustained and stable development is very important to China's insurance market.On the basis of the introduction of some basic conception of withdrawal mechanism of insurance, the thesis takes US and Japan as representative of developed country and studys them withdrawal mechanism of insurance and provides some suggestions on perfect our country withdrawal mechanism of insurance.This thesis includes three chapters. In chapter one, the basic theories of withdrawal of insurance market are introduced. Firstly, the thesis defines the withdrawal of insurance market. That is an expression of situation of insurance company's termination and last. With correspondence of insurance market accessions, it is an extremely method to make the failed insurance company eliminated completely by market ways. The Particularities of withdrawal of insurance market different from other enterprises are strict withdrawal conditions, process and legal means. The law of insurance pays attention to protection of policyholders. Withdrawal legally, accurate marketability and risk minimum are the concepts of withdrawal of insurance market. The reasons of withdrawal of insurance market are risks the insurance companies faced, such as uncertainty, the capability of calculation and payment and interest rate. Moreover, bankruptcy of insurance company is extremely easy to bring dominoes effects and cause the huge damage to economic development and social stability. So it is essential to construction withdrawal of insurance market.In chapter two, withdrawal of insurance market in US and Japan are introduced. American and Japan's insurance markets are two of world most developed insurance markets and they withdrawal of insurance market are perfect. The thesis studies withdrawal situation and mechanism of insurance market in US and Japan. The US has one of biggest insurance markets all over the world, but nearly several insurance companies bankrupt every year. The reason is less of reserve fund. There are strict procedure arrangements when insurance companies bankrupt. A great deal of insurance guarantee fund is established as reserve fund to compensate the policyholders. By this way, they make the policyholders'living not affected and maintain society's stability. The insurance marker of Japan is one of the earliest insurance market, but during 1997 and 2001 there are eight middle-sized insurance company went bankruptcy, the most important reason is the pressure from the variance between cost and income. Japan had established a strict standards about bankruptcy and the withdrawal, and established protect department to protect the insurance contracts holds from great loss to keep the stability of the community.Chapter three introduces the insurance withdrawal mechanism of developed countries, and provides useful proposals to China's insurance withdrawal mechanism. Above all, this chapter introduces the necessity of building the insurance withdrawal mechanism. The completion of insurance withdrawal mechanism is the requirement of insurance market compete mechanism, the sustainable and rapid development of China's insurance market, the requirement of China's insurance sector to develop and expand and the requirement of improve the management of China's insurance market. Secondly, the chapter analysis the drawbacks of China's present insurance withdrawal mechanism. It contains: the related laws un-completion, insurance companies restructure system deficiencies, the insolvency process management of bankruptcy process, lack of market warning system and the defect of insurance protection fund system. Finally, this chapter summarizes the countermeasures of China's insurance withdrawal mechanism, complete the legal system of insurance market withdrawal, pay more attention to the management of the insurance companies in operating difficulties. establish the standardized insurance market withdrawal rules, strength the company's risk management, establish risk warning system, make fully use of the insurance security fund, perfect the insurance protection fund system and so on.