By Li Jianwei, Yang Lin　

Date: 2004/11/09

Abstract:   

More categories and higher risks are seen in China's insurance industry in recent years. Generally speaking, they are system risks such as the nonstandard financial market, the archaic supervision and monitory model, and the low competitiveness in the whole sector. Viewing from different sectors, the risk of life insurance sector is derived from continued interest difference losses and the unbalanced liability-debt structure; the risk of property insurance sector rests on the high underwriting, flawed structure of products and increased risk from inadequate competition. To effectively prevent and combat insurance risks, it is necessary to improve the financial market, widen investment channels for insurance funds, encourage innovation, and set up a trinity risk prevention system composed of insurance supervision committee, industrial association and the insurance companies.