Research On The Development Of Life Insurance Trust Problems In China

Life insurance trust is one of the new forms in the domestic market area of thecooperation between trust and insurance, which involved four components includingcustomers, insurance companies, trust companies and trust beneficiary. In order to ensure theimplementation, an insurance contract and a trust contract must be signed, so that the trustproperty can be served as the insurance benefits or the valuable policies and the trustcompany is acted as a trustee to manage the trust property for the beneficiary. Additionally, atthe expiration of the trust contract, the trust beneficiary will gain the full benefit whichcontains the remaining insurance and the investment returns. Because of its powerful securityfunction, life insurance trust is significantly different with investment insurance andinvestment trust. Along with the prosperity of market economy and the increasingrequirement of the true-life, the construction of life insurance is becoming stronger andstronger. There are many cases that the insurance groups injecting capitals to the trustcompany, however, it’s rare that the company authentically executing the life insurance trustin mainland of China.This article introduce the cases that china’s Insurance companies pour funding into thetrust companies, such as the Ping An Trust, the Prudential trust, the National Investment trust,etc. However, their cooperation only stay in the initial stage. After doing analysis, the factorsthat restricting the development of life insurance trust in China mainly include, the separateoperation of financial business market which hindering the development of life insurance,the lake of the law on life insurance trust and tax system, the lower social public influence oflife insurance companies and trust companies. In this regard, referencing USA, Japan, Taiwanas an examples which we have learned the experience of developed areas, the model is thatrevocation useful to others of life insurance trust, we put forward some instructive andoperable suggestions, which include building a stable and orderly market order, formulatingperfect life insurance trust law, and strengthening the credit about Life Insurance Companyand the trust company, in order to Promote the development of China’s life insurance trusts.The convenience is that we can take targeted measures, which will make work moreoperational and productive.