Investment Of Insurance Funds, The Use Of Legal Supervision

The term 105 of 2002 Chinese insurance law was designed to regulate the investing fund of commercial insurance. In this term, there is a clause presenting that:"can be any form of investing fund which has been under provision by State Department". Just from here, within the period between Feb. 2005 to Feb. 2007, there were 14"provisions","opinion","notify"and so on, has been elaborated to the public. Especially the one came out at 26th June, 2006,"several opinions about the development for insurance industry by State Department", was showing a very clear attitude that State Department has already moved the bar for the investing fund of commercial insurance.The situation for investing fund was similar as how China regulates the whole insurance industry, still at the position of strictly controlling. The idea of management and the way to run the business was big difference between China and other country with developed insurance industry. But the highly concentrated business structure gave them an advantage to enlarge their capacity of insurance fund investment."Regulation"from State Department had more active flexibility.In order to use for reference, here to chose two countries as research model for study, England as the model for self regulated, untied states was the model for formed regulation. They both built their investment system on the base of business solvency. At last, try to analyze the model for China to regulate their fund investment for commercial insurance.