The Insurance Industry Risk Management Model

Since the beginning of reform and opening, in China it has been made big change in financial sector. After Third Plenum of the 11th CPC Central Committee being hold, there are economic system reform and a massive economic construction in China. In order to adapt to the new situation, the financial system, which is leaded by a central bank with many kinds of financial institutions has been established in this sector. As an important part of the national economic, the insurance has also recovery and development rapidly. As new industry potential for development is enormous. With the expansion of its size and power, it must occupy an important position in currency market and the capital market in China. But such a vital trade, its risk management system is so deficiencies that the all insurance is facing huge risks what seriously impacts on the insurance developing healthily, stably and sustainablely. Therefore, we urgently need to establish a complete and practicable risk management systems for insurance industry in China. Empirical research and regulate research are in combination in this thesis. And the thesis's basis is formed by previous research being overviewed more completely and systematically and the current situation in insurance in China being analyzed more thoroughly. The thesis designed the system from both external and internal and established the risk management systems in optimizing external and management internal. Among them, the external environment includes the following four areas mainly: strengthen risk management theories and subject constructing, revise and improve relevant laws and policies, establish industry-wide risk management information, strengthen the industry regulator. Internal management mechanism building is mainly from the following aspects: strengthen insurance product design management, strengthen insurance marketing management, strengthen insurance contract audit, strengthen reinsurance management, strengthen insurance compensation management, strengthen responsibility and appraisal management.