The Study On The Internal Control Of ZG Life Insurance Company

The internal control has been a longstanding issue in company managements.China's insurance industry has gained sustainable development since opening up and reform.While after the financial crisis in 2008,especially in the past five years,the insurance industry in China has been in a risk coming from the interest rate liberalization,violation of capital market.Also,dealing with the slowdown in economic growth,making different structural adjustments,and absorbing the effects of previous economic stimulus policies simultaneously have put great strains on the insurance industry.Therefore,the enhancement of internal administration and risk management should be put on the agenda instantaneously.ZG Life Insurance Company,as a listed company in three areas,have committed itself to focus on scientific development,aiming at reducing risk,improving efficiency,and strengthening management to increase competition.This paper is based on the internal control theory,analyzing from risk recognitions and evaluations,control activities,information and communication,and surveillance.This paper discovers that ZG Life Insurance Company has been relying on the risk management architecture at five level,and established three strong lines of defense,but it still has been lacking of internal control forces,mechanism improvement,and deficiency in surveillance.Moreover,this paper serves to demonstrate that we need to optimize the environment of internal control if we intend to improve the internal control,with the improvement of sales,cover,claim settlement,and financial affairs to promote surveillance mechanism and control activities.Finally,we need to establish a unified standard system,modify the internal control,and further improve the risk preference,so as to develop internal control system more effectively.