Four aspects are discussed in improving supervision on the insurance industry.

At present,the joint-venture insurance companies in China show the following common features：they all have just two stock holders, one from each side.

This paper looks at the real and potential risks in China's insurance industry and explores the definition of the system risks in insurance industry, the major factors which could trigger system risks in life insurance and non-life insurance, as well as the conditions on which individual risks may shift into system risks.

It has been seen in the history of international insurance industry that great system risks can be triggered by unbalanced asset-liability issue.

In 2004, under a series of macro control policies, the growth rate in real estate investment declined substantively, the demand on real estate was brought under control and the supply and demand situation on the market was gradually improved.

2004 witnessed a CPI increase of 3.9%, which was the highest of its kind since 1997. The "tail-perking" factor accounted for 2.2 percentage points while the price rising factor occupied 1.7 percentage points.

In 2004,the implementation of the macro-control policy was successful in checking the unhealthy and unstable factors in the economy.