The Impaction Of Regulatory Competition In China's Insurance Industry

Insurance is the most important part of the social security. It is not only related to the speed of China's development and the social stability,but also closely related to people's illness and death. At present, the scale of China's insurance industry is still small, and the insurance regulatory system is flawed. Therefore, in order to achieve sound and rapid development of the insurance industry, the first thing we need to do is to perfect the regulation of insurance.This article begins with analysis the status of insurance regulation, emphasizing on the regulation of entry, exit, business,financial and intermediaries, etc. Account that there are many problems in China's insurance regulatory system, such as: separate operation, separate supervision and financial openness contradictions; regulatory opaque; over-regulation and inadequate supervision, monitoring means and methods behind; insurance legislation backward. So, we can learn from the United States and other countries'insurance regulation model, which is the competitive monitoring mode. However, there are many scholars have questioned the regulatory competition, that regulatory competition will lead to deregulation of the insurance industry and inefficiency, and will increase the costs of regulation.To solve the challenge of Regulatory competition, this paper used a model and the case of insurance regulation of U.S. to analyze the competition in regulation. In the cases of U.S., we compare the regulation of several developed countries about solvency, premium rates, the using of funds and other aspects of the insurance regulation, to describe the regulatory competition impact on the insurance regulation itself. At the same time, we compared the profitability of insurance companies of some countries, hoping to analyze the impact of regulatory competition in insurance companies. In order to study more convincing, the paper also used a mathematical model to analyze the impact of regulatory competition.Through the case studies and the model analysis, we believe that regulatory competition don't lead to regulatory relaxation and inefficiency, and it can improve the profitability of insurance companies. Therefore we can learn from the U.S. insurance regulation mode to improve our ways of regulation.