The Establishment Of The Insurance Credit Rating System In China

Insurance industry is one of three bases of modern finance industry, managing in debt is its major feature, its capital and debt scale is unsymmetrical. If lack of credit, the public will lose credit with the insurance industry, and cut off the chain of capital towards the insurance industry, and shake the base of the existence and development of insurance industry. So, building insurance industry credit, maintaining the Public's credit towards insurance, ensuring insurance industry's capability of payment, is very important for preventing finance risk, maintaining the steady of finance system and ensuring the safety of our country's finance.Insurance product is a service good, it has the features with invisible, complex, chronic. In one sense, insurance product is a promise in the base of credit and with the guarantee of the laws. In insurance management, after customers buy insurance products and give money to insurance company, insurance company doesn't use visible products in the exchange. Asymmetric information in insurance exchange decide higher demand on insurance industry compared with others, good credit is the lifeline of insurance industry.My thesis use the theory of economy to analyze the significance of insurance credit building, introducing China's insurance credit system, studying American insurance credit system, then putting up the ways to build China's insurance credit system: building laws system; building punishment system on cheating; building credit culture; building credit collection system; building credit judgment system; building industry self-control system.Due to the development and depth of Reform and Opening policy,Insurance has developed greatly in China in the past twenty years,the Premium income from the 1980 restoration of the domestic insurance business 460 million yuan rose to about trillion in 2008.What has happened in China is well known in the world wide. However, it has to be admitted that there are many problems, for example, Lack credibility and Asymmetric Information,how to help insurance company to reinforce the competitive ability, how to strengthen Monitoring to promote the development of Insurance and so on. In order to solve the problems mentioned above, it is necessary to set up Insurance credit rating system。The reasons include that this system can reduce the decision of the insured, establish the competitive advantage of Insured and improve the efficiency of Insurance Supervision。This system plays an important role in increasing the efficiency of the whole insurance market.This article in mainly composed by four parts.Section one is the basic theory of insurance credit. It explains the meaning and Operating mechanism of Insurance credit rating system on the base of the meaning of credit and insurance credit. It analyses the Theoretical sources of Insurance credit rating system particularly such as Risk Aversion Theory,Property Pricing Theory and so on. Moreover, this section introduces the effect of Credit rating and present situation of Credit rating in China.Section two is the China's credit insurance and establishing the insurance credit rating system's significance, the first part is to understand the current situation of China's credit insurance market, As a major role of the insurance market, insurance providers—credit loss of insurers and insurance intermediaries , and summed up the reasons for lack of credit insurance. It also embarked the importance to establish insurance credit rating system in China now. From an economic point of view, there are three main aspects: Firstly, helping to reduce the transaction costs of insurance; secondly, insurers will also enhance the market competitiveness and ability to finance; thirdly, contributing to the insurance regulatory authorities to perform its regulatory duties.Section three is the core of this paper. The United States is the world's most developed insurance industry, the most comprehensive national insurance credit rating system. Insurance operations had its credit rating process, rating agencies and the rating method which has been studied and replicated in other countries has been. Therefore, to establish and improve our credit rating system, in particular the United States needs to learn from advanced foreign.Section four is how to improve our credit rating insurance and credit rating system focusing on the analysis of the current development, this is the end of the text. This section analyzes and research Urgency and Feasibility of setting up Insurance credit rating system in China. Based on the analysis and research above, China's insurance credit rating system that would process factors such as the obstacles faced by the credit ratings of the insurance awareness in adequate, given the relatively low level of credit rating agencies. The rating of the company to provide information and the lack of effective disclosure of information systems for a thorough analysis, according to the conditions of our country, increase from the external environment, and establish and improve related laws, strengthening the training of personnel and other areas to assess our credit rating system proposed construction of the relevant recommendation.