Study Of Internal Control Actors Impact Of Internal Control Environment In China's Life Insurance Company

Risk events happen frequently in these years around the world. Because of this, it is quite important to study and apply risk management theory. And according to the international standard, building a internal control mechanism is the first defense line of risk management. After three decades of reforms and opening up, China's life insurance industry has been developing well and promoting the stability of economic environment. Life insurance companies'operating was known as its high-risk, social responsibility and long-term running. So risk management is essential for them. China's life insurance companies already started to establish such internal control mechanism. But as we know, the internal control mechanism is just not working well as being expected for the structural contradictions among life insurance companies and the mismatching between internal control theory developments and the needing in actual applying in China. The constructions of internal control include five aspects. And its normal operating depends on the internal control environments'constructions, one of the five aspects.This paper firstly discussed how to set up the life insurance company's internal control mechanisms, and especially studied its basis, internal control environment. Then this paper analyzed the participants of internal control constructions, the board, management and their employees, in their power, responsibilities and benefits, and their roles and behaviors in the construction of the mechanisms in order to research the problems faced by China's life insurance companies. After that, the author used the optimal analysis and principal - agent analysis, belonged to the game analysis methods, to build a game model and got its balanced solution which made the three participants behaviors in line with the construction of a good internal control environment. Finally, the author gives the suggestions of how to construct a great internal control environment. However, the game analyses in this paper are mainly between two aspects instead of three, and also, without the analyses between the board and their staffs in the consideration of the actual situations in life insurance companies.