Research On The Current Situation And Suggestions For Mprovement Of China’s Insurance Company Independent Director System

Studying independent director system of insurance company is based on the practical need of the current situation about insurance company’s independent director in our country, and is the industry requirements to standardize internal governance structure of insurance companies. At the same time, it is the external environmental requirements of domestic corporate governance system and the international market.From the angle of reality, the independent director system was formally introduced to our insurance industry in2007. After the five-year development, China’s insurance company independent director system has made certain progress. However, there also exists many problems, for example, part of the insurance company’s enthusiasm to establish the independent director system is not high, part of the independent director work relatively lax, and the independence of insurance company’s independent director is weakened.From the industry, board is the core part of the corporate governance structure. To a certain extent, it determines the effect and the function of insurance company governance. Chinese insurance companies widely used "dual system" corporate governance model, and the independent director system is a kind of institutional arrangements embedded in the insurance company’s board. Independent directors play the oversight role by its independence, objectivity and effectiveness, and promote decision-making of the board to be scientific and democratization. The independent director and the board of supervisors have complementary functions to standardize governance structure of insurance companies.From the external environment, as a part of the financial institutions, insurance companies have financing and social management functions. Stable and safe management has certain significance to the market economy system and even the social stability. Some management experience at home and abroad show that corporate governance ultimately decides success or failure of the enterprise competition. As a part of the corporate governance system, the independent director system of domestic insurance company also has certain significance to maintain competitiveness in the opening domestic insurance market and in international market environment.This article constructs assessment system of independent director in our country based on the perspective of management mechanism of independent director system. According to the assessment system, this article further analyzes the current situation of independent directors, finally put forward policy recommendations to improve China’s insurance company independent director system. Full-text is divided into six parts:An introduction is an overview of research. First it makes the purpose of this study clear, and then according to the research purpose limits the scope of this paper and has carried on the brief explanation to part of the research methods. Integrating the content, it figures out the logic of research framework, and finally expounds the innovation and significance of this study.The first chapter is theory of independent directors and independent director system in this paper, the first quarter outlines the origin of independent director, according to the provisions of China Securities Regulatory Commission (CSRC) and the related theory defines the connotation of independent directors, and expounds the role of independent directors in corporate governance system; the second quarter analyzes the connotation of the independent director system from the angle of institutional economics, and describes the management mechanism of the independent director system, includes operation mechanism, incentive mechanism and constraint mechanism. The content of the first chapter is the theoretical foundation of the whole paper, laid the groundwork for this follow-up study.The second chapter combs the establishment and evolution process of the independent director system in our country. From solving the problem of "insider control" in the first quarter and strengthen the corporate governance structure of internal checks and balances two aspects elaborated the establishment of China’s insurance company independent director system; The second quarter firstly defined the scope of the generalized China’s insurance company independent director system, and then respectively expounds its build process; the third section The generalized system as a whole, the third section uses system analysis method, to analyses the evolution path of each part about management mechanism. The second chapter is the institutional background of the paper, sorts out the evolution path of management mechanism, is one of the reality bases for policy suggestions.The third chapter discusses the assessment system of China’s insurance company independent director. According to historical literature classification by mechanisms, the first quarter briefly reviewed the domestic and foreign literature of study on the roles of independent directors. The second section discusses the construction of assessment system of China’s insurance company independent director, including the aim and construction principle. The third section describes the status quo of the evaluation system framework. Combined with the connotation of the independent directors and independent director system management mechanism, it firstly set up six first-level indicators. According to the system background, theoretical basis and recognized research results, it set up sixteen second-level indicators and the evaluation criteria. Fourth quarter firstly elaborated the characteristics of the status quo of the assessment system, also list problem need to be solved in the selection process of assessment methods, and then expounds the advantages of the analytic hierarchy process (AHP) and choose the analytic hierarchy process, finally briefly illustrates the steps of AHP and a series of calculation formula of the assessment system scoring.The fourth chapter analyzes the present situation of independent director in domestic insurance company. First quarter review the literature about the present situation of independent director in domestic insurance company. The second quarter firstly elaborated the methods of samples selection and status analysis, on the basis, clarifying the analysis thinking of the current status. From the angle of statistic units and evaluation index, according to the rate on data collected, this article analyze the current situation, summed up the overview and specific characteristic of the current situation. From the angle of the primary index, the third quarter summarizes its current situation.The fifth chapter mainly put forward suggestions for improving China’s insurance company independent director system. The first quarter review the document of improving China’s insurance company independent director system. The second section reviews some principles of improving institutional arrangements. On the basis of the basic principles, in line with the theoretical basis and the reality basis, the third section put forward recommendations to improve China’s insurance company independent director system.