Analysis Of The House Loan Insurance Operational Mechanism In China

The full name of the house loan insurance is"Individual mortgage of commercial house insurance". It is the mandatory insurance which is requested from banks to borrowers. Actually, it is a credit guarantee insurance.Insurance is defined in our country's as:"According to contract's promise, the policy holder pay premium to insurer, at the same time, the insurer take on the compensation responsibility when the insured was dead, disabled, ill or achieve the conventional age in the contract".House loan insurance is the application of insurance in individual house mortgage operation. As credit guarantee insurance, it takes insured's credit risk as insurance object. The house loan insurance in our country are mainly guarantee insurance.As the development of the house loan insurance, there are a lot of ramifications of it in the insurance market such as: house load property loss insurance, house load life insurance. They are very helpful for keeping away the borrower's credit risk.House loan insurance develops a lot these years, whose importance is acquainted by a lot of financial institutions (including insurance company). But the house loan insurance is in its first step in our country. Its operational mechanism hasn't not established yet. A lot of unreasonable things lie in it, such as (1) There is not enough supervision. We have only two books of regulations for it since our house market start up, in 1992. Even for those two regulations, there are a lot of defects. (2) Lack of risk guarantee. Our society credit system is in the stage of established, lack of favorable credit culture basic. (3) Production is lack of innovation. Insurance responsibility is too narrow. (4) Insurance resource is allocated not reasonable. The house loan insurance in our country is only supported by commercial insurance companies.The root of these problems is the monopolized house market and the scarcity of the individual credit system.As the house loan insurance plays more and more important role, it become the main method of keeping away the house loan risk. It is very necessary and pressing for house loan insurance to renovate. The management of house loan insurance in developed countries also can supply us a lot of experiences. In such background, the writer does a deep research for house loan insurance. The entire article can be divided into four parts.The first chapter is the common analysis for insurance company. The writer explain the definition, the characteristic, the ramifications of the house loan insurance, expatiate the effect of the house loan insurance for society, financial institutions and borrowersThe second chapter analyzes the main problems of house loan insurance in our country. Firstly, the writer defines the definition of the house loan insurance operational mechanism. It includes four aspects: supervision, risk guarantee, production innovation and insurance resource allocation. Then the writer explains the main problems from the four aspects.The third chapter analyzes the developed countries'house loan insurance operational mechanism such as USA, England, France and Japan. Get the conclusions after do the detailed compare and analysis.The fourth chapter is the suggestion for the house loan insurance. It suggests reasonable means which should be adopted. Such as perfect the insurance regulations, establish the supervision institution, the individual credit system and design the new production.The maybe innovation of this article lies in three aspects.Firstly, for the topic. This article do a deep research for house loan insurance in our country while the other papers at the same time only put this topic in the house finance insurance and don't do it so deeply and detailed.Second, the writer focus on a few hot topics in house loan insurance market, such as mandatory insurance, sum insured and the premium.Third, the writer offers some suggestions for our house loan insurance model.Fourth, the writer uses demonstration method to analyze the status of the house loan insurance; uses compare method to compare the situation between developed countries and our country; uses the criterion method to offer some suggestions.