The Motives Of The Insurance Industry Mergers And Acquisitions And Principles

The economic globalization is the obvious characteristic of the economy in the 21st century. In the middle of the 1990s, with the World trade organization established, economy in all countries association were getting closer, the production factor is mutually fusion, the trend of permeate be further strengthen and cause multinational company and information technique quick development. With the obstacle of the insurance market gets into disappearing and cancellation even, the insurance company's multinational merger and acquisition activities getting more and more active, in terms of expanding its scale, expanding management region, and promoting market quota. Under the background of the weakening of insurance regulation, the gradual enlarging of the huge disaster risk, and continuously innovation of information technique, from 1990s world insurance capital was experiencing large-scale merger and reorganization that never happened. All these created a group of giant insurance group. But after the merger and acquisition, some problems appear. Those giant insurance groups started to carry on property removal and reorganization. So what is the cause of insurance company's merge and reorganization? And what are the principles in its process?The article begins from the economics theories, combines with cases analysis, and launches a discussion and investigation to this problem. Use the method of combination of theories and case investigation, aim to get the cause and regulation of insurance company's merger and reorganization. At the end of the article, discuss the guidance to strengthen our country's insurance industry. On one hand, we need know that merge and acquisition to a company has important meaning; on the other hand, we need to contact our market background, not to pursue others without strategic ideas. We need to seek a suitable timing on the basis of reasonable strategy of development. Meanwhile the related law system and market system etc. should also be established, to create a good market environment for the merge and reorganization activity of the whole insurance market.