Professional Insurance Agency Risk Management Research In China

After34year’s rapid growth since the reform and opening up in1978, insuranceindustry has become one of the fastest growing industry in the national economy of China.As an important part of the insurance market system, the insurance intermediary marketcontinues to be more and more prosperous accompanied by the rapid economic and socialdevelopment. As an important part of the insurance intermediary market, the professionalinsurance agents has played a positive role in many aspects, such as toact as bridge and tache between the insurer and the insured, to meet the demand ofinsurance, to improve market system, to expand the service field and to serve the economicsociety, etc.。But because of the late startup, weak strength, and limited time, the insuranceindustry faces the direct risk and derivatives risk during the process of development, suchas market access risk, product selection risk, modality risk for co-operation, compliancerisk and reputation risk, etc. It’s an arduous task to construct the risk management systemas a result of the simple modality for co-operation between professional insurance agentsand insurance company, the weak foundation and the lack of risk management. There aretoo many law-breaking cases handled during the insurance intermediary businessexamination which is running for3years from2009to2011. They are all caution andlessons for the following cases: the problem about the specialized insurance agencyfalsely making out invoices and hanging up virtual business, the illegal fund-raising andpyramid marketing cases for the legal person of Liaoning Chende insurance agent limitedcompany and Hangzhou Minfeng insurance agent limited company. Therefore,it is necessarily to integrate internal and external resources, To strengthen theoreticalresearch, to cultivate the concept of risk management, to draw up goal gradually, toimprove market system and mechanism, in order to construct a integrated risk managementsystem contains enterprise internal control, government regulation and self-regulation ofthe industry and to do a good job of professional insurance agencies risk management.