Study On The Counter Cyclical Regulation Of Insurance In China

Since the international financial crisis in 2008, the development and regulation of Chinese insurance industry have been facing increasingly serious challenges. As an important part of the financial system, the insurance industry has to deal with potential risk from the downturn of the economy. To minimize the downturn effect, governments and the financial regulators agree that to strengthen counter-cyclical regulation is necessary.Given the uncertainty of global economy and the readjustment of domestic economy, the research of the counter-cyclical regulation is positive to reduce the effect of unstable, uncertain economic factors, prevent significant systemic regional risk, and secure the steady growth of insurance business.This paper first studies the economy cycle effect toward the insurance industry, analyzes bad performance of the industry in the cycle. Second, the paper formulates the idea of counter-cyclical regulation to eliminate the economy cycle risk. Third, the paper suggests the measures of the counter-cyclical insurance regulation.