The Current International Financial Crisis On China's Insurance Industry And Countermeasures

Since April 2007, the outbreak of the subprime crisis in the United States has swept across the world as an unprecedented financial "tsunami". This financial crisis has entered a deeper and broader stage, whose reason concerns kinds of factors in different fields and levels. It is a huge challenge in terms of China's insurance industry which will face a "shuffle", including the division of foreign insurance, insurance agencies and etc. whose ranking list may change. The financial crisis will lead to a decline in the insurance industry, premiums, insurance and the solvency deterioration in loss ratio increased industry risk. This unprecedented global financial crisis has caused enormous economic and financial impact, and the future development of the global financial and regulatory models also suffer an important impact. Still in the initial stage of development for China's insurance industry, we should not only to actively respond to the financial crisis and safeguard national financial security, but also to deeply understand and grasp, the challenges and opportunities brought to China's insurance industry by the financial crisis, so that the crisis is the opportunity to better explore the road of development with Chinese characteristics and the insurance industry to better serve the economic and social development.Financial crisis has brought a profound revelation for China's reform and development of the insurance industry:First, the insurance industry can not be divorced from economic and social development and people's needs. Second, the insurance can not be divorced from economic and financial development of innovation stage. Third, the sound operation of the insurance business can not deviate from its law. Fourth, the supervision can not deviate from the anti-risk insurance regulators, and promote development and protect the interests of the msured's goals. Fifth, the financial crisis as an opportunity pulls the insurance industry.The responding strategy of China's insurance industry to the crisis is:the insurance business should swing back and focus on security; the insurance industry should strengthen professional skills and the insurance company's risk management capabilities; to promote product development and stimulate the insurance consumer. To support national macroeconomic policies and reforms in key areas, positive economic and social development services; to use of investment instruments prudently, to adhere to the principle of the stability of the insurance investment; to create a flexible response, covering a comprehensive regulatory system, guard against and defuse the insurance risks, and maintain stability in the insurance market; also responsible for nurturing the real investors, and early warning of systemic risk to the credit rating agencies.