The Research Of Insurance Guaranty Fund Pricing System

The insurance market is a part of market economy,which follows the principle of market allotting resource and survival of the fittest.In the competing,there must be some companies going bankrupt.But the insolvency of insurers would attack all the financial system and the stable of social economics.So it is important to designing a system,which can protect the insurance policy holders.In the practice of the state guaranty fund systems,the moral hazard problem has to be taken into account.The pricing method of the fund is the key sssue of the guaranty fund system,and will play important role in directing the fund operated effectively.The dissertation implements some knowledge of insurance,management, econometrics and statistics on the research of China’s insurance guaranty fund’s institution both from the views of theory and practice.Finally,the article concludes that it is necessary to implement risk-based premiums to replace flat rate premiums. This research is divided into five chapters.Chapter 1 raises the issue that the dissertation researches,and describes the ideas and research methods and other related contents.Chapter 2 presents the development of insurance guaranty fund pricing system at home and abroad and summarizes the characteristics in order to provide some beneficial references for our country’s insurance guaranty fund.Chapter 3 combings the pricing theories of insurance guaranty fund to establish and perfect our country’s insurance guaranty fund pricing theory system.Then this article summarily proposes to establish a pricing system based on risk rank classification and discusses the risk classification theory and the optimal scale of insurance guaranty fund.On the basis of theoretical analysis in the last chapter,chapter 4 carries on the empirical analysis to our country’s insurance market.This chapter uses the factor analysis and economic capital method to classify some insurance companies in China according to their risk level,and tries to estimate the optimal scale of our country’s insurance guaranty fund.Chapter 5 puts forward some effective and reasonable suggestions to our country’s insurance guaranty fund pricing system.Finally,the dissertation finds out 8 conclusions.They are:1,the current flat rate premiums will induce moral hazard;2, it is necessary to implement risk-based premiums based on risk rank classification to replace flat rate premiums;3,China’s insurance industry needs to further improve the information disclosure system;4,we should pay close attention to risk early warning mechanism,and strengthen insurance companies’s risk control;5,it is reasonable to select the explicit and beforehand collection system in our country;6, we should pay extra attention to the negative impact on insurance companies, implementing the risk-based premiums system;7,it is recommended to use solvency shortage combined with business scale as the base of pay insurance guarantee fund;8,we should clarify the refinancing policy of insurance guaranty fund.