The Establishment And Improvement Of Internal Control Of Our Property And Casualty Insurance Company

Effective inter-control system is the cornerstone of the efficient operation of enterprises, which plays an important role in the enterprises management. The inter-control is an important part of the insurance company’s internal risk management in the operation and management, which is one of the most effective ways to control the operational risks and important methods to regulate the operations of the insurance company.From the external regulatory requirements, the government and regulatory authorities have promote inter-control to the Laws and regulations’level which have unified standards and requirements, in order to strength the enterprise governance and risk management, regulate the operations of market’s healthy development, and to promote economics development better and faster. The United States strength the effectiveness of the company’s inter-control and the authenticity of financial report, which are the responsibilities of the CEO and CFO by the Sarbanes-Oxley Act."The Corporation’s inter-control guidelines in Shanghai Exchange Market" was published in June2006, which started the establish of the inter-control system of the listed companies in China."The basic regulations of the Inter-control " was published by the Ministry of Finance, the Audit Commission, the Securities and Futures Commission, the Chinese Banking Regulatory Commission and the Chinese Insurance Regulatory Commission in June2008."The Support Guidelines of the Inter-control" was published by the five commissions in April2010. The inter-control regulations of Chinese enterprises was basically established which have reasonable structure, scientific methods, structured order and completed system, which had the main control standards and evaluation standards in order to manage the risk and control the fraud.The of insurance companies come from not only the pressure of the industry regulation, but also the inherent requirements of the development of management level. From this background, this paper begins form the Institutional changes of Inter-control, analysis the achievements and problems of internal control in the development, summarizes the personal opinions of the insurance enterprise’s inter-control establish, with the Insurance enterprise’s inter-control case as material, and with the G property&casualty Insurance Company as an example, in order to guide the theories and practices of insurance enterprise inter-control construction.This article is organized as follows:The chapter one introduces the research background and purpose. The chapter two reviews the five stages of the theory development of enterprise risk management from the internal check, internal systems, internal structure, inter-control integration and comprehensive risk management. The chapter three begins with the review of inter-control of China’s insurance industry, analysis every elements of the inter-control of the insurance industry and different failure cases in the different inter-control of China’s insurance industry with the methods of case study, in order to reflect the key link in the system of inter-control, with "The Support Guidelines of the Inter-control" published by the five commissions and the report of "The Integration Framework of inter-control" published by the COSO commissions in1992.(COSO is the promoters Commission under the U.S. National Committee of false financial reports). The Chapter four analysis the inter-control system construction of the G insurance company before2011through the case studies based on inter-control theory. The author believes that at that time the G company had the defects including uncompleted corporate governance, unimproved inter-control environment, ineffective inter-control system, inadequate information technology, and without a risk-oriented supervision mechanism. The Chapter five introduces the industry regulatory requirements under the new system, introduces the the risk control keys need to grasped, under the inter-control system of the foreground, background, and the basic management of three levels’construction and suggests the improve measures in each control point about the G Company. In future, in the inter-control system The G company could improve the internal environment of the development for the purpose of coordinating, enhance risk management capabilities supported by the advanced methods, strengthen the internal control mechanisms which regulation management as the core, build efficient information communication mechanism that security oriented, and build the protection of the internal supervision system for the further construction field. The sixth chapter summarizes the in-depth study field due to the author’s own reasons in this thesis.The main innovation of this paper is that the author have detailed study on the construction of the inter-control system of the property and casualty insurance companies from the practical view. It is also has a certain significance on the work of the enterprise inter-control self-assessment in the Domestic insurance companies, in order to enhance the industry’s risk management.