Revelation Of The Supervision Of Financial Reinsurance From Usa And Britain Experience

The earliest financial reinsurance can date back to the late 1960s, initially in the form of so-called Funding Policy or Roller popular in the Lloyd's market. With the barriers of financial service industry being broken down, the industry moving toward liberalization and becoming increasingly competitive, financial reinsurance is greatly developed and has caused much attention from accountants, investors and insurers. Because of the way people used to keep accounts, they evaded tax but transfered no risks. So financial reinsurance has been subject to controversy. In recent years, financial reinsurance developed fast. Also aroused great concern from the supervision level, accounting staff, investors as well as the insurers. More and more insurance companies abuse the financial reinsurance to divert profits and whitewash financial statements. This sort of abuse has brought difficulties to supervision and ringed the alarm.With regard to the supervision of financial reinsurance, the main characteristic lies in its financial aspects; the corresponding regulatory should emphasize on accounting, so many countries regulate in accounting laws. The biggest financial reinsurance market is in the US; US and UK have the most detailed regulatory requirements; other countries have strict or loose requirements, but are generally from the US and UK model. This essay intends to compare and analyze the US supervision system for financial reinsurance with that of the UK; then the author would make suggestions for our supervision. Chapter 1 introduced the concepts and theories about financial reinsurance. In other words, this chapter is a research foundation in the thesis. Therefore, this chapter is divided into five sections. At first,the author analyzed the basic conception and development. Then, the operate theory was displayed by the balance sheet. In the third section, the financial reinsurance was classified by the international standard. And compared the financial reinsurance with the traditional reinsurance in the forth section. At last, the author analyzed the harm of the unreasonable use of the financial reinsurance.Chapter 2 is the essential part of this essay. The cognizance of character is not only the first step but also the most important step in the supervision on financial reinsurance. So the author analyzed the basic theory and compared the different definition for financial reinsurance in the USA and Great Britain.Chapter 3 compared the supervision pattern in several countries and regions in Asia, such as Singapore, Japan and Taiwan. The author tried to find out the feature these supervision patterns share.Chapter 4 analyzed problems we might met while dealing with financial reinsurance supervision. It is can be said that this chapter has an important position in the whole thesis. It is true that the problem which includes that why and how we supervise relates to the meaning even on the thesis only through this chapter. At first, this chapter analyzed the circumstance and perspective of the financial reinsurance in our country, and notes the importance of the supervision. Then, the author analyzed we must have more notice on some aspect, such as information report, security of bargaining, sufficiency of reserve and etc.