|其他題名: ||A study concerning the impact of life insurance industry system after amending the insurance law for China's entrance to WTO|
|作者: ||林昀冀;Lin, Yun-chi|
|關鍵詞: ||保險法;保險資金;壽險市場;Insurance laws;insurance capital;life insurance market|
|上傳時間: ||2010-01-10 23:31:32 (UTC+8)|
Insurance industry in China has its new start since the reform and disparking have been implemented in the country. In 1995, China announced its first “insurance law”, which brought modern development and initial standards into the insurance industry; after China’s entrance into WTO in 2001 and in order to comply with its commitment to further disparking of China’s insurance industry to the foreign countries and to revise its laws to match the modern trend, “Insurance law” and laws and regulations in related insurance departments thus had been revised one after another after 2002.
In 2002, “Insurance law” in China had been revised from its original 8 chapters and 125 articles into 8 chapters 158 articles, among them, 32 articles are revised based on old articles and 6 articles are newly added. The most important changes are: 1. The making of insurance rate has been changed from “Self-deciding” to “Examining and approving” system. 2. The starting of short term health insurance and accident and injury health to the insurance company. 3. Gradually allowing the multiple channels investment of insurance capitals. 4. Build s solid monitoring system to reinforce guarantee to the insurance customers.
The revision of insurance law has created influential impact to the economic side of the life insurance industry of China too, for example, flexibility and room for designing a new product for many life insurance companies become larger due to the change of insurance rate into examining and approving system. In order to cope with the interest difference loss of the bank due to the low interest rate, the widening of the use of insurance capital has lead to the launching of new life insurance product into the market from the life insurance company, for example, bonus insurance contract, investment-linking insurance contract and universal insurance contract. On the one hand, not only more usable capitals can be acquired from the market continuously to be used as more aggressive investment; but also on the other hand, the operation risk of insurance company can be effectively lowered or transferred to the insurance customers; this has very positive impact on the financial and operation situation of all the insurance companies in China. Until now, in the insurance market of China, almost 60% are filled with new life insurance products; among them, bonus insurance contract is the one that has the largest market share. Therefore, the insurance depth in China has risen to 2.703% in 2005 and the insurance density is about 300 RMB for each person and the life insurance fee occupies about 70% of the entire insurance total. All the above shows that the life insurance industry in China is still expanding and there is still large market potential for further development.
Additionally, the revision of insurance law has made Insurance Monitoring Commission in China launch many new departmental regulations, for example, “Management rules and implementation details for foreigner-owned insurance companies” announced in 2004 has created a legal basis for the entrance into China market by the foreigner-owned insurance company. Until March 2006, about 23 foreigner-owned insurance companies have successfully entered China market; on the other hand, Through a relationship of joint venture between China and foreigner-owned insurance company, foreigner-owned life insurance company usually takes the group insurance contracts from the affiliates of cooperated China-owned mother company in order to increase its revenue. Therefore, foreigner-owned life insurance companies have their market share rose gradually from 1.75% in 2002 to 8.90% in 2005. We can thus see that the competitive power of foreigner-owned life insurance companies is continuously in a rising trend.