Study On Pre-control Of Credit Crisis In China's Non-life Insurance Industry

Since the reform and open-up policy has been carried out, China's insurance industry has developed rapidly together with its national economy. Meanwhile, there are more and more insurance disputes caused by illegal operation of insurance companies and agencies and dishonest acts of insurance customers. Particularly, criticisms levelled at non-life insurance industry focus on its credit issue. Lackness of credit gets more and more prominent, becoming a bottleneck restricting the sound development of the industry. Therefore, a thorough analysis and systematical research on the credit issue is very important to the sound development of non-life insurance industry in China.Firstly, the author described the current credit status of non-life insurance industry, based on theories of credit in general and insurance credit in particular, by induction and qualitative analysis. According to its operational and regulatory characteristics, the author then listed out factors that may cause a credit crisis of non-life insurance industry and how it might happen. The author also made constructive suggestions, such as building-up a credit evaluation system and strengthening supervision, to prevent and control a credit crisis of non-life insurance industry. Through the joint participation of all parties, effective measures will be found, hopefully to prevent and control a credit crisis, establish a good image, and ensure a sound developmentof the non-life insurance industry, so as to guarantee the financial stability and economic order of China.