Reflections on insurance supervision of financial holding group

Insurance financial group as a mixed operation of important participation in the force, it is a large scale, complex organizational structures, as well as a wide range of business structures, make it once the crisis is likely to have a huge impact on the entire financial system. Therefore, the construction of regulation system in an efficient, viable, mutual cooperation is very necessary. Insurance financial holding group, refers to the insurance, banking, securities, trusts and other financial business Consortium, dominant in the insurance business in the group management, characterized by insurance subsidiaries share profits, assets and other financial indices and other financial institutions within the Group has a significant advantage over. In the existing insurance groups in China, could be called insurance financial group is ping an of China (601,318, unit), other insurance groups, such as Chinese, because there is no commercial bank in the framework of the group known as the insurance financial group. As the share holding commercial bank insurance company increased China's insurance financial group will gradually increase. Recommended reading insurance weekly: variable amount annuity pilot started Beijing Shanghai five city first wins insurance enterprises violations promotions penalty 500,000 insurance ring "Wang yawei" emerge surface exaggerated income does not to risk silver insurance disputes constantly should first to family "pillar" Shang foot insurance regardless of from lost insurance is zehui Shi Qiming jointly immortal see disk build boutique lecture insurance financial group as mixed industry operating of important participation forces, is financial innovation of main creators one. It is a large scale, complex organizational structures, as well as a wide range of business structures, make it once the crisis is likely to have a huge impact on the entire financial system. While, insurance financial group in the of insurance subsidiaries was insurance protection fund of protection, holding company and other subsidiaries has power will group within of risk transfer to insurance subsidiaries, eventually results is formation insurance financial group "large and does not pour" of moral risk; on the, insurance company itself is operating risk of enterprise, insurance financial group relative Yu other type of financial group, was requirements has more strong of risk conversion and risk configuration of function, if entire group risk configuration of ability weaker, will more easy caused financial group internal risk of passed. Therefore, how to prevent the infiltration internal risk insurance financial group is the focus of its internal risk management, as well as regulators focus. China's existing "line three" industries are regulated system, prone to repeat when the supervision of financial holding company supervision and regulatory gaps, conflict of interests between the various sectors are also likely to occur. Therefore, build an efficient regulatory regime is necessary, viable, mutual cooperation, this relates to the healthy development of China's insurance financial group and socio-economic stability as a whole. Supervision system design of present situation of China's financial holding companies and financial open innovation is still at an early stage, and China's current supervision system established more than 10 years of industry-Division, established in 1998 the China insurance regulatory Commission and founded in 2003, the CBRC has been around 10 years. If you want to through the establishment of a comprehensive financial regulatory departments, be responsible for the consolidated supervision of financial markets and financial institutions, would mean that the three major regulators of great transition cost, regulatory bodies in the process of consolidation, may result in the transition period and longer periods of lower regulatory efficiency. Therefore, on our part, instead of considering the new institutions established for the consolidated supervision, rather than focusing on research in construction under the condition of existing coordination of multilateral supervision. Mode selection of supervision even determined the multilateral monitoring system, drawing on United States take umbrella regulation, but who is to act as umbrella supervision are still controversial. Academia calls higher of is by people Bank Tan this responsibility, causes can summarized for following several points: for effective fulfil regulation functions of consider, people Bank should enjoyed financial holding group of supervision permission, audit and assessment group of overall risk, to prevention financial risk of spread; silver prison will, and SFC and insurance regulatory Commission min industry and treatment, lack people Bank as of detachment status; because people Bank in economic and financial in the of special status and role, it both monitoring bank system of operations index and run status, again monitoring securities market of operations index and status, its relative Yu "three will" has more full of information network, helps supervision information shared. However, the characteristics of insurance financial group, making this form of umbrella-shaped supervisor has certain drawbacks. "Group holdings, a legal person separate" organizational model is insurance financial group can play a mixed-industry operation cost efficiency advantages, but also isolate different business unit risk guarantee. Group mode, the parent company of various economic behavior is controlled through stock ownership relations be achieved with a certain degree of indirection, can play a role in controlling risk. Although insurance financial group has a general financial group integrated management features, but has the distinct features of the insurance industry, in the form of cash flow for the insurance business stability, profitability and risk factors of affecting the robustness of decision insurance financial group run. From the special nature of the insurance business and the supervision of professional point of view, need insurance as the primary regulators, consolidated insurance regulation and stress on the monitoring group and insurance subsidiaries financial group. If without distinction as to financial holding companies of the banking industry, still the CBRC or the people's Bank to lead regulatory, professional supervision and coordination must be discounted. Firewall established by financial groups engaged in the business of financial institutions in cross-trading restrictions and limitations, you can achieve the objective of risk isolation, preventing risks. Insurance financial group of firewall, while, can is using corporate independent and the limited responsibility of features, set several independent corporate entity engaged in different of financial business, to will mother company Zhijian, and subsidiaries Zhijian for appropriate separation, prevent risk transmitted; on the, can in insurance financial group and the subsidiaries Zhijian on information circulation, and personnel arrangements, and business joint venture and the funds facility, aspects made prohibited or restrictive system arrangements, prevention institutions Zhijian of interests conflict and risk transmitted. In accordance with the prevention of the main, these firewalls can be divided into four parts: insurance and banking firewall, firewall in Bank and securities, insurance and securities firewall, group company and subsidiary of the firewall. Business-specific features, the loan conditions, duration and amount of securities investment, internal trade, structure, capital and capital adequacy calculationClear restrictions in areas such as, firewall really play a role of quarantine risk. Although the construction of legal system of China's various forms of financial holding companies are now quickly established, but the current nature, legal status and supervision of financial holding company and not expressly. In recent years, regulators in the industries are regulated on the basis of an appropriate adjustment, financial regulators began to establish cooperation mechanisms. In June 2004, the China Banking Regulatory Commission, the securities, insurance regulatory Commission official announced the three major financial regulators financial supervision Division memorandum of the "regulatory mechanism of the joint" put on three major regulators to coordinate work schedule, and the first tripartite cooperation "institutionalized". Looking at the existing legal system, China has a category, the banking, insurance, securities and other laws, I believe that, in a new set of financial bills before forming, existing laws can be applied to insurance financial group in terms of picking out to structural framework for the compilation of insurance financial group, and group-specific risks making special emphasis or special provision to compensate for the absence of existing laws. Insurance financial group in the development process, will be internal and regulatory gaming, is targeting to maximize the benefits of a party, the other party is to target the security of the entire financial environment. How to ensure security on the basis of the encouraging financial innovation, promote the development of financial integration, is to regulate the sector of focus should be taken into account when designing regulation system issues, construction of the system as a whole will require more research and analysis, and practice tests.