China's Insurance Enterprise Risk Management Studies

China has seen a great development of the insurance industry since it re-established the insurance business in 1979. The average annual increase rate of total insurance premium has been over 30%, more than 1000 insurance products have been adopted, and the number of insurance companies has been increasing. A competitive market system has been formed in the insurance industry.No risk, no insurance. The insurance industry appears and develops due to the existence of risk. The insurance business is more risky than the other businesses, so risk management is the most concerned topic in the insurance industry.Looking at the insurance market in China, you can find that the insurance companies are facing a great many risks, which are harmful to the development of our insurance industry. In this paper the author analyzes the risks, which exist in our insurance industry, and attempts to provide solutions to the problems.There are six kinds of risks in our insurance industry: firstly, risks that come from the corporate governance system of state-owned insurance companies, which includes the choice system, the stimulation system, and the operating system; secondly, risks that come from loss of interest rate differentials due to the high interest rate of life insurance products, the low yield of responsibility deposits and inappropriate business expansions; thirdly, risks that come from decrease of insurance prices due to the sharp competition; fourth, risks that come from reinsurance; fifth, risks that come from investments; sixth, risks that come from lack of laws and regulations.Six aspects should be emphasized on risk management: firstly, improve risk awareness; secondly, strengthen cultivation of talents; thirdly, establish effective interior control system, which includessystem of insurance check and ratification, system of claims check and ratification, and pre-warning index system of interior control; fourth, enhance supervision of the insurance industry, especially of its ability to compensate; fifth, strengthen functions of self-disciplinary organizations in the insurance industry, supplying the gaps of risk management left by the supervising organizations and the interior control system; sixth, enhance credibility of the insurance industry.