Research On Regulation Of Insurance Intermediary In China

Insurance intermediary is the inevitable result of social division in insurance market, and becomes an indispensable component of the market. China's insurance intermediary market has just started, on the one hand benefit from the rapid economic development of its huge market demand, while on the other hand intermediary institutions themselves cannot fully enjoy the great demand because of weak competitive advantage. Meanwhile, with the opening of the insurance market after China's entry into the WTO, fierce foreign competition leaves little time for both insurance intermediary institutions and regulatory body to learn how to compete efficiently, which make it an urgent question to be addressed. All in all, it is significantly important to strengthen the insurance intermediary market research, promoting insurance intermediary to development healthily and play positive role in the market.Bearing the insurance intermediary market regulation in mind, the author offers supply and demand analysis of the intermediary market conditions, and discusses how CIRC promote the intermediary market to develop legitimately and healthily, borrowing support from "Diamond Model". I also offer the overall concept of regulatory measures and it's specific contents. This dissertation is arranged as follows: First, brief introduction about insurance intermediary market is given. Then I point out the outstanding problems that exits in China's insurance intermediary market, which is based on both the demand-supply analyses of the market and a brief review of historical development of the market; Second, the author utilizes Game Theory of, Institution Transition and Path Dependence Theory to analyze the nature of the problems of insurance intermediary market. Then I point out the main research thesis of this dissertation: how to perform regulation on insurance intermediary market effectively in order to promote the market to develop healthily; Third, the dissertation introduces Diamond Model, which consist of four factors: production, demand, supporting/relevant industry and the company's strategy, and discusses how theses factors act together and determine the healthy development of an industry and it's competitive advantage. Regulatory bodies can play its part in affecting the four factor of with the aim of strengthen China's insurance intermediary industry; At last, this dissertation discusses the measure that should take by CIRC to strengthen and improve regulation on domestic insurance intermediary market. So, government can play an active part by its "visible hand".The main viewpoints and conclusions are summarized as follows: (1) problems of China's insurance intermediary market can be summed up as enormous market potential demand with insufficient effective supply;(2) Diamond Model offer a good angle for regulatory measures and effective benchmark for evaluating government policy;(3) Systematic measures can be developed basing on four factors of Diamond Model: (1) to promote the quality of production factors, (2) to expand and improve the quantity and quality of market demand, (3) to develop supporting and relative industry, (4) and to further improve the corporate governance structure, encourage innovation and acquisition and reorganization in the insurance intermediary market. All these measures should function as a whole and in turn gradually resolve the existing problems in the market, which culminate in healthy development of this market.