Constructing Risk-Based Regulation System Of Insurance Industry

After 20-year sustained development, China's insurance industry has been on the new starting point, entering a new stage of development. The profound changes taken place in the insurance industry created new challenges on insurance regulation and make it facing a new, dynamic and complex regulating environment. Objectively, it demands China's insurance regulation department to further improve regulating system, change monitoring method, enhance regulating efficiency and speed up to accord with international standards.Recent years, the Western countries with developed insurance industry have gradually established risk-based insurance regulation system, which further enhanced the effectiveness of insurance industry regulation. So it is very important to learn from the experience of western countries and base on the actual situation of china's insurance industry. It is also an important step to conform to the developing trend of international insurance regulation, to solve the problem of China's insurance regulation efficiency, and enhance the effectiveness of insurance regulation.On the basis of comprehensive conclusion of China's insurance regulation development and analysis of current insurance regulation model efficiency, this paper proposes a new thinking method of borrowing the international insurance regulation experience, introducing the "risk-based regulation concept" and the risk-based insurance regulation system construction. It will construct a "three-pillar" risk regulation system, including the monitoring mechanism that takes the solvency margins supervision as the key, corporate governance as the foundation, and market behavior supervision as the guarantee. Through the construction and implementation of "three-pillar" risk regulation system, effective improvement of the regulation methods, gradual loosing of the strict control on specific operation acts of insurance institutions, strengthening of regulation on insurance company solvency and risk monitoring, and also by leading the insurance companies to strengthen corporate governance, to establish internal control system and to strengthen management and control of their own risks, it can achieve the shift from a business-based static control to a risk-based dynamic regulation, from the strict external regulation to the internal supervision with the guidance of external supervision. Therefore, it will continuously upgrade the effectiveness of insurance regulation, maintain effectiveness, equity, stability and security of insurance market, protect the interests of the insured, realize "development through regulation ", and promote the sustained and sound development of the insurance industry.