The insurance industry refers to the industry that collects funds in the form of contracts to compensate the economic interests of the insured.
Insurance refers to the act that the applicant pays the insurance premium to the insurer according to the contract, and the insurer assumes the liability to compensate for the property loss caused by the occurrence of a possible accident as agreed in the contract, or to pay the insurance benefits when the insured dies, is disabled, and reaches the age and time limit agreed in the contract.
The insurance market is the place where both parties sign insurance contracts.It can be a centralized tangible market or a decentralized intangible market.
According to the different subject matter insured, insurance can be divided into property insurance and life insurance.
Life insurance is an insurance that takes the life and body of a person as the subject matter of insurance.When people suffer from an unfortunate accident or loss of working ability, disability, death or retirement due to illness or old age, according to the agreement of the insurance contract, the insurer will pay insurance benefits or annuities to the insured or the beneficiary to solve the economic difficulties caused by illness, disability, old age or death.
According to whether there is a direct legal relationship with the applicant, insurance can be divided into primary insurance and reinsurance.The insurance act between the insurer and the applicant is calledoriginal insurance。happen toInsurerThe insurance act with the insurer is calledreinsurance。
Chinese name
Insurance
Definition
The funds collected in the form of contracts are used to compensate the economic interests of the insured
Since the reform and opening up, the development of China's insurance market has made remarkable achievements.In 1980, the domestic insurance business resumed and the national premium income was only 460 million yuan.In 2000, the national premium income reached 159.6 billion yuan, an average annual growth of 34%, but there are still many problems in the development process.From the perspective of the current situation of the world insurance industry, the development level of China's insurance industry is still quite low.In 1999, China's per capita premium (insurance density) was only 110.58 yuan (about US $11.4), far away from Switzerland's 4654.3 dollars, the US's 2722.7 dollars and Hong Kong's 1072.8 dollars, ranking 78th in the world;The proportion of premium income in GDP (insurance depth) is only 1.49%, ranking 66th in the world, while that of developed countries is generally about 10%.From the perspective of the development of the domestic insurance market, there are still few competitors and a high degree of monopoly;The development of intermediary market and reinsurance market is seriously lagging behind;The insurance product is single, and the service mode and means are backward;Insurance companies are short of capital and the quality of assets is not high.[1]
It is an important task for us to promote the development of the insurance market and solve the above problems in the process of development.[1]
（1） Increase insurance institutions and expand the insurance market.Gradually increaseChinese funded insurance companiesQuantity of;For joint-stock companies with high level of operation and management, sufficient solvency, and no serious violations of laws and regulations, additional branches shall be approved;Gradually add a number of new agencies, brokers and insurance assessment intermediaries to develop the intermediary market;We will appropriately increase new reinsurance companies and foster the reinsurance market.[1]
Growth rate of global direct premium from 1980 to 2015
（3） Encourage innovation and improve services.Carefully design and constantly improve insurance products to provide more safe and competitive insurance products to meet the needs of all sectors of society.[1]
（4） Prevent risks and strengthen supervision.Urge the establishment and improvement of insurance business institutionsInternal control system, prevention and resolutionbusiness risk；Firmly crack down on illegal insurance activities and ban illegal insurance institutions;Regulate the operation of insurance companies and intermediaries, create an environment of legal operation and fair competition, seriously investigate and deal with fraud and misleading policyholders, and maintain the normal order of the insurance market.[1]
Related concepts
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China Insurance Regulatory Commission
China's insurance industry has experienced a tortuous process of development.People's Bank of ChinaThe Ministry of Finance has exercised the function of supervising the insurance industry in different historical periods.After the founding of New China in October 1949,People's Insurance Company of ChinaEstablished under the leadership of the People's Bank of China.Since the second half of the 1950s, China's insurance industry has entered a long-term low state, and the supervision of the insurance industry has stagnated.In April 1979, the State Council approved the gradual resumption of domestic insurance business, and the insurance industry is still under the supervision and administration of the People's Bank of China.On March 3, 1985, the Provisional Regulations on the Administration of Insurance Enterprises promulgated by the State Council stipulated that "the State insurance administration organ is the People's Bank of China".Since then, the People's Bank of China has gradually established and strengthened internal institutions to supervise the insurance industry.In July 1995, the People's Bank of China established the Insurance Department to supervise Chinese funded insurance companies.At the same time, the People's Bank of China has strengthened the construction of a systematic insurance supervision organization, requiring the establishment of an insurance section in provincial branches, and sub provincial branches to be staffed with full-time insurance supervisors.[1]
With the development of separate operation of banking, securities and insurance, the State Council approved the establishment of the China Insurance Regulatory Commission (CIRC) on November 18, 1998, in order to better supervise and manage the insurance industry.[1]
China Insurance Association
The China Insurance Association was established on March 12, 2001China Insurance Regulatory CommissionThe national self regulatory organization of China's insurance industry, which has been approved and registered with the Ministry of Civil Affairs, is a non-profit social organization legal person formed voluntarily.On December 17, 2007, in accordance with the spirit of the Guiding Opinions on Strengthening the Construction of Insurance Association Organizations (BJF [2007] No. 118) issued by the CIRC, the Insurance Association of China held the third session of the members' representative conference and successfully realized the change of term, smoothly carried out the reform of the system and mechanism, established the full-time president responsibility system, and steadily promoted the standardization, professionalismProfessional construction.[1]
insurance company
The economic organization mainly engaged in insurance business is the insurance company.The insurance company has other financial institutions[1]
The operation of insurance companies is a comprehensive business activity based on scientific analysis and professional knowledge.It emphasizes the rational and effective organization and operation according to the objective economic law, natural law, technical law and the law of insurance activity itself.The operating principle of insurance companies is the principle determined by the law of large numbers and probability theory. The more the insurance companies have, the greater the coverage, the more dispersed the risks will be. Only when the insurance coverage is expanded and the social benefits of insurance are improved, can more insurance funds be gathered to establish a solid foundation for economic compensation and ensure the stability of the insurance companies' own operations.[1]
Organizational form
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The organizational form of the insurance industry can be divided into the following four types according to the different business entities:[1]
（1） State run insurance organizations[1]
Also called public insurance, it refers to the insurance institutions operated by the state, local governments or other public organizations.[1]
（2） The company operates insurance organizations[1]
It is one of the private insurance organizations.According to the form of liability, companies include limited liability companies, joint stock limited companies, unlimited companies and other forms.The organization of joint-stock insurance companies has the characteristics of flexible operation and high business efficiency, but because the control of the company is in the hands of shareholders, the rights and interests of the insured are easy to be restricted and ignored, so all countries supervise and manage the company's operation of insurance organizations in legislation.[1]
（3） Insurance Cooperation Organization[1]
It is one of the non company forms of private insurance. It is an organization that is jointly organized by people or units in need of insurance protection in society to handle insurance business in a cooperative way.There are mutual insurance cooperativesMutual insurance company, insurance cooperatives, etc.[1]
（4） Individual business insurance form[1]
In the world, only English law allows individuals to underwrite insurance business as the main body of insurance.Individual underwriting insurance business is carried out through Lloyd's, an organization.Lloyd's is a special phenomenon in the insurance market. It has existed since it was registered with the government in the name of Lloyd's in 1871.According to the provisions of the original Interim Regulations on the Administration of Insurance Enterprises, the organizational system of China's insurance industry is composed of the national insurance administration organ, the People's Insurance Company of China, other insurance enterprises and rural mutual insurance cooperatives.[1]
The current Insurance Law stipulates that the organizational form of insurance companies should adoptwholly state-owned company And companies limited by shares.With respect to wholly state-owned insurance companies and joint stock limited insurance companies, unless otherwise specified in the Insurance Law, the relevant provisions of the Company Law of China shall apply.Other organizational forms of insurance companies, such as mutual insurance companies, can be separately stipulated by laws and administrative regulations according to the reform and development of the insurance industry.According to the Report of the People's Bank of China on the Institutional Reform Plan of the People's Insurance Company of China approved by the State Council, the People's Insurance Company of China will be transformed into the People's Insurance (Group) Company of China ("PICC Group" for short) to adapt tosocialist market economyNeeds.The reconstructed China Insurance Group has three subsidiaries, namely, China Insurance Property and Casualty Insurance Co., Ltd., China Insurance Life Insurance Co., Ltd. and China Insurance Reinsurance Co., Ltd., which respectively operate property insurance, life insurance and reinsurance businesses.China Insurance Group will embody the principle of commercialization, adhere to group operation and separate operation.[1]
Current situation in China
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Although China's economy has entered a new normal, and development in all fields is facing "three phases superposition" of growth shift, structural adjustment pains, and early stimulus policy digestion, China's insurance industry fully respects the market law, continues to reform and innovate in development, and the total assets of the industry have reached 11.6 trillion yuan at the end of the third quarter of this year, up 14% from the beginning of the year, on the basis of breaking through 10 trillion yuan last year,Encouraging achievements have been made.At the same time, China's insurance industry, on the one hand, seized the opportunities of the Internet, accelerated supply side reform with business type innovation, promoted traditional insurance companies to constantly update their development concepts, innovate development models, and cultivate new business growth points;On the other hand, it is committed to the modernization of risk regulation, and the implementation of the second generation of reimbursement is steady, which provides emerging market experience for global insurance regulatory rule making, and makes positive contributions to international regulatory rule making and reform and development.
Development and reform of the insurance industry[1]
The 16th National Congress of the Communist Party of China put forward the goal of building a well-off society in an all-round way. The CIRC concluded that China's insurance industry is in the primary stage of development by analyzing the current situation of the development of the insurance industry.The main contradiction at present is that the development of the insurance industry does not adapt to the economy and society. It is proposed that we must seize the rare opportunity to make the insurance industry bigger and stronger as soon as possible.In recent years, the insurance industry has established and implemented a scientific concept of development. With reform and opening up as the driving force, structural adjustment as the main line, and market system construction as the basis, it has achieved remarkable results in persisting in preventing and resolving risks.First, the insurance business developed steadily and healthily.In 2004, the national premium income was 431.81 billion yuan, up 11.3% year on year. The insurance income accounted for 3.4% of GDP, and the insurance density (per capita premium) was 332 yuan.Among the premium income, property insurance business grew rapidly, reaching 108.9 billion yuan, up 25.4% year on year.The premium income of life insurance business was 332.8 billion yuan, up 7.2% year on year, but still accounted for 74% of the total business volume, due to the impact of the insurance company's adjustment of business structure and the rise of interest.The total assets of insurance companies were 1.18 trillion yuan, breaking through the 1 trillion mark last year, with a balance of 1.12 trillion yuan. At the same time, the quality and efficiency of insurance business growth were improved.According to the statistics express, the profit of the whole insurance industry last year was the highest in recent years.
Promotion of insurance reform.Since the second half of 2003, China Property and Casualty Insurance CorporationChina Life Insurance Co., LtdChina Ping An Group Co., Ltd. has been listed abroad.The supervision of international investors has gradually turned into the conscious action of listed companies, and the business volume of the three insurance groups together accounts for more than 60% of China's insurance market.The vitality of the reform is becoming a strong driving force for the healthy and rapid development of China's insurance industry.The third structural adjustment has achieved initial results. The structure of life insurance products has been improved, new business has grown rapidly, bancassurance products have gradually transformed, risk protection products have accelerated development, and business quality has been improved.The degree of property insurance market has declined significantly.The proportion of the first few large companies in the premium is relatively large, but now it has dropped significantly, that is, the market competition is more adequate.The use of funds and investment structure of insurance companies have improved.Because in the investment structure of insurance companies, the proportion of bank deposits was relatively large in the past, but now the proportion of bank deposits has declined, and the bank stimulus debt andconvertible bondIt has become a new investment highlight in the insurance industry.
New breakthroughs have been made in policies and measures to promote development.First, the insurance market access mechanism has been continuously improved, and new market players have emerged.In the past, it was not easy to set up a new insurance company in China, and there were few new Chinese funded insurance companies approved for many years. However, in 2004, a number of new insurance companies were approved, including the first agricultural insurance company, the first construction insurance professional company, and the firstPension insuranceThe company has made new breakthroughs in the specialized economy and organizational form innovation of insurance companies.Last year, there were eight Chinese funded insurance companies and fourForeign insurance companiesEnter the market to carry out business.At the same time, a number of branches of insurance companies have been set up to promote market competition.Second, the channels for the use of insurance funds have been continuously widened.In addition to the purchase and sale of government bonds and financial bonds by bank deposits as stipulated in the Insurance Law, insurance companies are now allowed to buy and sell enterprise bonds,securities investment funds Direct investment in the stock market.Allow insurance companies to use their own foreign exchange funds overseas, and allow insurance companies to invest in bank stimulus bonds andConvertible corporate bonds。Insurance companies are allowed to make negotiated deposits with commercial banks.The expansion of insurance fund application channels has created conditions for insurance companies to strengthen asset liability matching management, diversify investment risks and improve investment returns.Third, insurance companies have increased their financing channels, allowing them to issue stimulus bonds, which provides a new way to solve the pressure of capital increase in the rapid development of the insurance industry and improve solvency.
Risk prevention work has been continuously strengthened.The CIRC has been focusing on risk prevention, taking capital utilization as the key linkInsurance guarantee fundIn order to protect the insurance industry from risks, the insurance fund management measures were announced at the end of last year.If an insurance company fails to close down and go bankrupt due to mismanagement, the relief to the insured can be borne by the insurance statutory fund.The role of insurance in serving the economy and society has been further played.In terms of economic compensation, after the occurrence of some major natural disasters, insurance companies made timely compensation and played an important role in properly handling disasters and accidents.For example, the air crash on November 21 last year,Personal accident insuranceIt paid 13 million yuan and 23 million dollars for the loss of the aircraft fuselage.At the same time, more and more people, families and enterprises regard commercial insurance as an important means of pension, medical security and enterprise risk management.In terms of financing, the national debt held by insurance companies at the end of last year was 265.17 billion yuan, financial debt was 115.68 billion yuan, and corporate debt was 6.876 billion yuan.The contractual deposit in the bank was 370.94 billion yuan.To support the construction of the national economy in a variety of ways, insurance companies hold 57.5 billion yuan in securities investment funds. As major institutional investors, insurance companies play an increasingly prominent role in promoting the stable development of the capital market.The bank stimulus bonds held by insurance companies accounted for more than 30% of the total issuance of bank stimulus bonds, which increased the number of bankscapital adequacy ratio, which provided strong support for promoting the reform of commercial banks.In terms of developing new service areas, insurance companies have launched coal mine owner liability insurance, medical accident liability insurance and fire and road insurance liability pilots in some provinces and cities in response to frequent production safety and public liability accidents in various regions. Insurance companies have also participated in the pilot of new rural medical care in eight provinces, cities and 41 counties, with the number of insured reaching 8.07 million,The operation efficiency of the new countryside has been improved.Insurance companies in nine provinces and cities including Heilongjiang and JilinAgricultural insurance pilotAnd actively explore the agricultural insurance business model in line with the actual situation in various regions.In Northeast China, insurance companies also actively participated in scheme design and fund management during the pilot reform of enterprise annuity.
2、 The opening up of the insurance industry
On December 11, 2004, the transition period for the insurance industry to join the WTO has ended, marking that China's insurance industry has entered a new period of comprehensive opening up.joinWorld Trade OrganizationSince then, the process of opening up the insurance industry has been accelerating.The breadth and depth of opening up have continued to expand.There were 28 foreign-funded insurance companies in the Chinese market before joining the WTO. At present, there are 37 foreign-funded insurance companies, and another 3 are under construction.The second is the quality of openness, which was published by Fortune magazine in 2003World Top 500There are 46 insurance companies in total, 27 of which have set up foreign-funded institutions in China.The third is rapid development.In 2004, the business of foreign-funded insurance companies increased by 9.8 billion yuan, up 45.7% year on year. The premium income of foreign-funded insurance companies accounted for 2.3% of the total premium.However, in Shanghai, Guangzhou and other cities that opened to the outside world earlier, the market share of foreign-funded insurance companies has reached 15.3% and 8.2% respectively.The entry of foreign insurance companies has promoted market competition and brought advanced technology and management experience.It has played a good demonstration role in the analysis of sound operation and quality service.The overall development level of the insurance industry has been improved.In the next step, the insurance industry will continue to unswervingly expand its opening up to the outside world.First, we should abide by the commitments of WTO accession and constantly improve the institutional safeguards.The second is to actively introduce foreign insurance companies with expertise in health insurance, liability insurance and agricultural insurance, encourage foreign insurance companies to set up business institutions in the central and western regions and northeast regions, and drive the development of relevant businesses and insurance markets in relevant regions.The third is to implement unified supervision over Chinese and foreign insurance companies, create a fair competition environment and promote common development.Fourth, strengthen international exchanges and cooperation and expand the international influence of China's insurance industry.
3、 New situation faced by the insurance industry
Looking at the economic situation at home and abroad, China's insurance industry is in a rare period of development opportunities.After more than 20 years of development, the foundation of the insurance industry has been continuously strengthened and the reform has been carried out in depth. China's insurance industry is undergoing transformation, mainly in five aspects.First, the degree of marketization has improved. The successful restructuring of state-owned insurance companies marks that mixed ownership, characterized by modern shareholding system, has become the main form of China's insurance enterprise system.Insurance companies have gradually become the real subject of market competition.Second, the growth mode has changed, and the management concept of insurance companies has undergone profound changes.From the simple pursuit of scale to the focus on the unity of speed and quality, structure, efficiency, and the improvement of their own quality.The promotion of connotation value and the long-term development of the enterprise.Third, the function of insurance develops in depth.With the continuous deepening and expansion of the insurance function, the social demand for insurance develops to a higher level.For the government, insurance can be used as a market economic means to assist social management, reduce management costs and improve management efficiency.For enterprises, insurance, as an effective means of risk management, can play an important role in improving their management level.For individuals and families, people need more insurance to ensure medical care, insurance and education.Fourth, the external relevance of the insurance industry has been growing.With the listing of insurance companies and the development of investment and financing insurance market, the dependence of insurance market on capital market has increased.Insurance companies are increasingly becoming important institutional investors in the capital market, and their role and influence on the capital market is growing.With the deepening of comprehensive financial management, the scope of cooperation among banks, securities and insurance has become wider and deeper.Fifth, the degree of internationalization is deepening.More and more foreign insurance companies are entering China's insurance market, and foreign companies are playing an increasingly important role in China's insurance market, spreading risks around the worldInternational Reinsurance Market It has greater influence on China's insurance products and pricing.With the overseas financing of insurance companies and the overseas use of insurance and foreign exchange funds, the international financial market has an increasing impact on China's insurance market.After the end of the transition period after joining the WTO, China's insurance market will be further opened to the outside world, and will gradually integrate into the international insurance market, becoming an important part of the international insurance market.
Current situation and trend
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Development Status and Trend of World Insurance Industry
（1） Development status of world insurance industry
(1) Premium income.
according toSwiss Re According to the statistics of the third issue of Sigma magazine in 2004, the world's premium income in 2003 was 2940.67 billion US dollars.Among them, the industrialized countries accounted for 89.32% of the world market share, of which the United States accounted for 35.89% and Japan accounted for 16.28%;Emerging market countries and regions accounted for 10.68%.China ranks 11th among 88 countries and regions, accounting for 1.6%.The largest premium income in 2002 was US $1055.498 billion;The second is Japan, with 478.865 billion US dollars;This was followed by the United Kingdom ($246.733 billion), Germany ($107.811 billion), France ($163.679 billion), Italy ($111.761 billion), South Korea ($59.758 billion), Canada ($59.144 billion), the Netherlands ($50.266 billion) and Spain ($47.014 billion).
(2) Insurance depth.
Insurance depth is the proportion of premium incomegross domestic productSpecific gravity of.It reflects the status of a country's insurance industry in the entire national economy.The calculation formula is:
In 2003, the global average insurance depth was 8.06%. The top 10 countries or regions in the world were South Africa (15.88%), the United Kingdom (13.37%), Switzerland (12.74%), Japan (10.81%), Belgium (11.61%), Taiwan (11.31%), Barbados (11.29%), the Netherlands (9.77%), South Korea (9.63%), and the United States (9.61%).China ranked 44th among 88 countries and regions, with insurance depth of 3.33%.
(3) Insurance density.
Insurance density refers to the average premium calculated by the national population.It reflects the average level of insurance coverage for a country's citizens.The calculation formula is:
According to the statistics of Sigma magazine of Swiss Re in 2004, the 8th issue, Switzerland ranked first with an insurance density of US $5660.3, followed by the UK with an insurance density of US $4058.5.In 2003, the global insurance density was $469.6, including $2763.5 in industrialized countries and $58.7 in emerging markets.The average level in most industrialized countries is between US $1100 and US $3700, while the average level in developing countries is low.China's insurance density has grown rapidly, but the level is still low, ranking 71st at US $36.3.
（2） Development trend of world insurance industry
(1) Liberalization of the insurance market
1. Relax rate control to make rate a marketing strategy.
2. Liberalization of insurance services.
3. Relax the restrictions on the establishment of insurance companies.
