Research For Ownership Structure Perfection Of The Insurance Company In China

Since the resumption of property insurance business, there has established more than a hundred insurance companies in China. The insurance industry has achieved a leap-forward development, and the insurance market has developed so as the insurance laws and regulations. All kinds of capitals rapidly come into China’s insurance market what lead the insurance companies’ownership structure to be so complicated. As it follows, there are many problems. To solve this problem, insurance should import more shareholders to make the ownership structure more multiple. In order to avoid insurance company just has one big shareholder, the business entity, organizational investor and the government should take counterbalance to each other. Through the view of share’s property, organizational investor should be the powerful player in this balance structure, because it has the capability to monitor the operation of insurance company.This paper focuses on the ownership structure problem of China’s insurance companies. It try to analyze the entire ownership structure of China’s insurance companies, then give some suggestion which will fit the development of China’s insurance companies. Therefore, the insurance companies’management could be upgraded and the development of China’s insurance companies as well.The structure of this paper is as follows:ChapterⅠgive introduction of the meaning, background about this title, research ideas and method and main innovative ideas and insufficient.ChapterⅡis a theoretical overview of ownership structure. First, it gives the definition of equity structure, puts forward the ways of measurement ownership concentration; second, explain four main factors theories of equity structure (with the current situation of China):economic factors theory, political factors theory, market structure factors theory and the life cycle theory. ChapterⅢhas two sections. SectionⅠdescribes the development of the insurance company ownership structure in China, in which it also contains the introduction of regulation laws and four steps of innovation of China’s insurance companies. Meanwhile it introduced three models of China’s current ownership structure with the combination of annual report.ChapterⅣanalyses the current problems of ownership structure of China’s insurance companies. The state-controlled insurance companies still exist ownership concentration and one big shareholder situation, so the absence of owners and serious internal control issues happens a lot in China’s state-controlled insurance companies. For the companies like pingan insurance company which has developed for a long time,it should consider how to keep the introduction of the number of shareholders and reasonable shareholding ratio, in order to maintain the rapid development and national characteristics; for newly established and medium size insurance companies, how to maintain the stability of its shareholders, and on the other hand to avoid frequent changes in ownership structure to maintain the sound operation of insurance enterprises and strategic objectives of the consistency is the problem. At the same time the particularly noteworthy things are that the bank shares in the insurance company may raise the potential risk, such as the risk associated with trading, banking credit risk, insurance risk and regulatory risk. Although China’s banking and insurance are rapidly developed, and it even has become one of the main business of insurance premium income and bring more fee income to the bank, there is the cooperation of banks and insurance companies are limited to product agency areas, both of which sides have the willing to cooperate in high-level, but the current laws and regulations hold the development. With the multiple operations, the relevant departments to allow banks to the insurance company shares to cooperate in high-level and that give the chance to both sides to have a great development.Chapter V can be divided into two parts. The first part is the moderation analysis of the ownership structure. Through analyze three methods of highly concentrated, relatively concentrated and highly dispersed ownership concentrations it can be concluded their advantages and disadvantages in corporate governance, and provide some reference proposals for the optimization of ownership structure. The second part is the proposed for optimization measures and ownership structure of insurance companies. It gives full play to the advantages of institutional investors in the daily operation and oversight of management activities, and directly involved in the management of insurance companies. Ownership structure of insurance companies tends to be multiple and diversified. In recent years, China’s state-owned insurance industry to gradually accelerate the pace of reform, the three major state-owned insurance companies has completed the shareholding reform. State-controlled ratio is markedly reduced and ownership is gradually dispersed.