Mutual Insurance Law Adjustment And System Orientation

As one of the oldest forms of insurance in the world,the organization of mutual insurance relies on a reliable reputation for long-term development and occupies a certain market share in the international insurance market.Mutual insurance along with its organization have undergone a process of demutualization.And after the international financial crisis,they have revived due to the characteristics of reliability,security and quality services."Trial Measures for the Supervision of Mutual Insurance Organizations" has been promulgated in 2015,which were the first time that China defined mutual insurance and its organizations.After that,a series of mutual insurance organizations were established.The problems of thin operating scale and rudimentary product design has been encountered in practice.Mutual insurance is one of the insurance behaviors adjusted by the insurance law,which complies with the basic principles of insurance operation,and has not yet been explicitly written into the insurance law system.On the surface,mutual insurance is distinguished from other types of insurance by the type of composition of the underwriting organization.The essential type standard is the path of composition of the policyholder group.Insurance can be divided into mutuality and aggregation insurance according to the composition path of the group.The mutuality characteristic is specifically reflected in the organic composition of the policy holder to the insurer.That is,the policyholder has formed the membership-based insurer,which assumes and spreads the risks of the policyholder groups,while the insurer of aggregate insurance is integrated into a group,which provides the existing insurance products to objectively form a fund pool and aggregate into a policyholder group.Mutual insurance supplements the original relationship between the policyholder and the insurer in the Insurance Law System,which reduces the conflict of interest between the policyholder group and the insurer by exchanged the independence of the organization,and it's also brings the credit problems,moral hazard and community risk.Accordingly,it is not the profit requirements or standards organization on the nature of the type of mutual insurance organization,but rather as the owner of insurer have become the main institutional differences caused by the policyholder groups.The mutual characteristics of members of mutual insurance organizations reflect the core functions of the organizations to diversify risks and digest losses,which are specifically reflected in the rights of members to participate in democratic management of organizations,the rights and obligations of members to participate in insurance activities,and termination of membership.In terms of organization form,the member congress is the highest authority of the organization.The mutual characteristics are reflected in the democratic management rights of member representatives and the establishment of organization structure.Regarding the distribution of funds and surpluses,there is a limitation on the repayment of the initial funds of the organization.The realization of the repayment will ultimately be borne by the subsequent operating funds.After the initial operating principal and interest are repaid as planned,the rest surplus can be distributed to members.Regarding the organizational transformation mechanism,there have been two-way transformations between mutual insurance organizations and joint-stock insurance companies.In the process of transformation,the legitimacy design of the legality of procedures,the transformation of members' rights and obligations,and the inheritance of creditor's rights and debts are required.The insurance legal system,while maintaining its original structure,needs to continue to self-regenerate according to the legislative positioning needs of mutual insurance and its organization.First,improve the legal status of its legislation for the adjustment of the mutual insurance legal system.It can follow the agricultural insurance legislation process and carry out legislative activities in the form of laws or administrative regulations.Secondly,improve the structure of civil subject relations in the insurance law and legislate to regulate the special risks of mutual insurance.Finally,formulate supervision rules for mutual insurance and its organizations,legislate to maintain the membership system of mutual insurance organizations,supervise the fund and surplus system,construct an organizational transformation system,and formulate specific and supporting supervision for mutual insurance and its differences.