I want to correct the mistakes in large, medium and small print.

First, the structural adjustment of the international insurance industry

In recent years, great changes have taken place in the business environment of the world insurance industry, which are highlighted in the following aspects:

First of all, economic globalization has brought great competitive pressure. Driven by the tide of economic globalization, the already indifferent business boundary in the financial field has become more blurred, and it has become very common for financial institutions in various countries to operate products outside this field through mergers, the establishment of holding companies, subsidiaries, the formation of financial groups and joint ventures. Among them, the most prominent is that commercial banks use their huge business network advantages to attack the insurance field, especially the life insurance field, and seize market share.

Second, the aging population not only breeds a huge potential insurance market, but also puts forward higher requirements for the preservation and appreciation of insurance funds.

Third, scientific and technological progress has brought about continuous innovation of financial commodities. Since the 1990s, the rapid development of high-tech represented by electronic communication technology, computer and Internet technology has not only reduced transaction costs and saved time, but also expanded the potential of providing various financial services in an all-round way, enabling financial institutions to combine their own traditional financial services with other financial services to provide a package of services, thus creating conditions for financial product innovation.

Fourth, the deterioration of the natural environment and the risk of catastrophe have greatly increased. Due to the excessive expansion of human activities and predatory exploitation of natural resources, the living environment of human beings has been deteriorating. The frequency and severity of various natural disasters are rising, and problems such as soil erosion, climate warming, earthquakes, floods and storms are becoming more and more serious.

Under the background of the above changes, the international insurance industry has accelerated its structural adjustment.

(1) The integration of the insurance industry with other financial services industries has been further accelerated. Under the pressure of financial liberalization and intensified competition in the financial industry, on the one hand, the insurance industry has expanded its production and operation scale through intra-industry mergers and acquisitions, effectively reducing and controlling production and operation costs, and enabling enterprises to concentrate their advantages. On the other hand, through the integration with other financial businesses such as banking, asset management and securities industry, we can enhance our competitive strength and provide consumers with comprehensive financial services, including the establishment of subsidiaries, mergers and acquisitions, joint ventures, the formation of financial groups, the formation of holding companies and the signing of joint venture agreements. ...

With the integration of insurance industry and other financial services, the service scope of insurance industry has been greatly expanded. At present, large insurance groups are developing in the direction of "financial supermarket". Engaged in life insurance business, non-life insurance business, reinsurance business, asset management, credit card, securities underwriting, securities brokerage and other businesses. It can be said that in addition to the management of deposit business and payment methods, life insurance companies have set foot in all banking businesses.

It is worth mentioning that in the integration of insurance industry and other financial businesses, the government's relaxation of the control of separate operations is an important policy factor. For the sake of safeguarding public interests, protecting consumers, ensuring full competition and ensuring the stability of the financial system, the basic framework of traditional financial supervision is to implement separate operation and supervision of banks, securities and insurance. However, since 1970s, the above-mentioned financial supervision mode of strict separation has been loosened. In recent years, with the continuous development of various forms of mixed operation, the principle of separate supervision at the policy level is disintegrating, and some governments have begun to adjust the regulatory framework. For example, the principle of strict separation of financial services in Japan has been revised in the new financial bill. The United States has passed a new bill that explicitly allows banks, insurance and securities industries to compete in each other's markets. What is certain is that under the new regulatory framework, the integration of insurance industry and other financial services will be further accelerated.

(II) Continuous innovation of insurance products and accelerated adjustment of insurance structure Due to the rapid development of financial innovation in financial markets, new financial instruments such as money markets and funds have attracted a large number of individual investors with their flexibility and expected high returns. Compared with new financial products, traditional life insurance products lacking flexibility are greatly inferior. In this case, in order to enhance the competitiveness with other financial institutions and reduce the interest rate risk of life insurance business, life insurance companies began to develop new types of insurance and create new insurance products. This kind of life insurance product innovation has the following characteristics: First, it increases the flexibility of life insurance products. It changes the term characteristics of traditional life insurance and makes life insurance contracts easier to terminate. It changes the fixity and regularity of traditional premium payment and makes premium payment more flexible. Second, the new product highlights the savings and profitability, and puts forward higher requirements for life insurance investment. The new product highlights the saving nature of life insurance and emphasizes the saving (financial) factors of life insurance policies, making life insurance policies more valuable for investment. New products make life insurance policies more profitable through more effective investment. The third is the separation of insurance and savings. The savings factor in traditional life insurance products is considered as a by-product of paying fair premiums, and savings and insurance are inseparable in insurance contracts. The savings factor in new products is usually considered as a relatively independent part of the insurance policy, and the savings income is directly related to the premium and investment income. The higher the return on investment, the higher the premium "savings rate".

Because of the short term of non-life insurance products, it is different from life insurance products, which objectively limits innovation. The competition among non-life insurance companies is mainly reflected in product prices and service quality, rather than product differences. However, with the increase of catastrophe risk and the new risks accompanied by scientific and technological progress, there are still some new insurance products, such as World Cup football insurance, mad cow disease insurance and Internet insurance.

(III) Adjustment of insurance organizational form At present, the organizational structure adjustment of foreign insurance companies is highlighted in the shareholding of mutual insurance companies. An important motive of insurance company's demutualization is to obtain equity capital and other financing channels, such as convertible corporate bonds, warrants and preferred shares. With the accelerated integration of financial services, the demand for capital growth and capital investment of insurance companies is increasing. The main source of equity capital growth of insurance companies is retained earnings. When the retained earnings are insufficient, they must integrate capital from the capital market. Mutual companies can obtain funds by borrowing, but the acquisition of equity capital is greatly restricted. While joint-stock companies have all financing options in the open market, it is much more convenient to go to the capital market for financing after mutual companies are demutualized. Another important reason why insurance companies don't interact with each other is the flexible advantage of joint-stock company structure. By adopting the structure of holding company, insurance companies can bypass the restrictions of insurance management authorities on insurance companies to operate non-insurance businesses; Mergers and acquisitions within the industry can be carried out without reducing the statutory surplus.

(IV) Adjustment of insurance management mode Due to the application of high technology in the insurance industry, the management level and efficiency of the insurance industry have been greatly improved; At the same time, it has a strong impact on the structure of the insurance market and the traditional insurance management. In insurance marketing, with the popularity of home computers and consumers' concern about the efficiency of insurance services, new marketing methods such as telephone direct sales and online sales have developed rapidly. The American Independent Insurers Association mentioned in the survey report "Insurance Trends and Forecast in 2 1 Century" that new technologies, especially the Internet, will lead the operation of the insurance industry to a brand-new and revolutionary development process. In the coming 10 year, 365,438% of corporate insurance and 37% of individual insurance policies operated by insurance companies will be sold through the Internet.

Another change in insurance marketing is the sharp increase in bank insurance sales. In the new distribution mode of insurance industry, bank insurance sells insurance policies through banks, which is very successful in developed countries in Europe and America. In France, Spain, Sweden and other countries, the premiums realized by selling insurance through banks account for 60% of the total business in the life insurance market and 5- 10% of the total business in the non-life insurance market. Insurance companies can use the powerful distribution network of banks to sell general insurance products, and they can also bundle insurance and bank loans, and bundle insurance and credit card business to achieve the effect of killing two birds with one stone.

In the management of insurance companies, the progress of high technology has also brought great changes. Computer network provides very convenient conditions for insurance companies to operate and cooperate on a global scale. From 65438 to 0994, the Electronic Reinsurance System (ESP) was applied in London insurance market, which greatly improved the operation speed of insurance transactions. The Computer Value-added Service Network (PINET) initiated by Munich Reinsurance Company promotes the automation of global reinsurance transactions. In terms of internal management, insurance companies have generally realized computerization of internal management and networking of internal contacts. From the processing of documents and data in various departments within the company to the information transmission between departments, from enterprise decision-making to underwriting claims, from insurance marketing to the automatic processing of capital utilization, it is inseparable from the application of computer systems. It can be said that computers and computer networks have covered all aspects of the internal management of insurance companies.

The change of international insurance management mode is also manifested in the innovation of risk management mode brought about by the increase of catastrophe risk. Since 1980s, major disasters with losses of more than US$ 5 million have occurred frequently around the world, causing huge losses to insurance companies engaged in property insurance. Catastrophe risk has increasingly become an important issue of concern to the insurance industry. With the increasing catastrophe risk, insurance companies not only continue to take general risk diversification measures such as increasing capital, increasing reserve withdrawal and increasing reinsurance ratio, but also adopt new risk management methods including risk securitization and catastrophe futures.

Second, some thoughts on the development of insurance industry in China.

Compared with developed countries, China's insurance industry is still in the early stage of development, and some of the above-mentioned structural adjustments have just appeared in the development of China's insurance industry, and some have not yet seen clues. However, with the approach of China's accession to the World Trade Organization, the pace of opening up the insurance market in China will continue to increase, and the above adjustment of the international insurance industry will definitely have an impact on the development of the insurance industry in China. Therefore, it is imperative to speed up the development of China's insurance industry and meet the challenges.

(1) Deregulation.

Judging from the development trend of international insurance supervision, deregulation has become the mainstream. Deregulation is first manifested in the relaxation of access conditions in the insurance market; Secondly, it is manifested in the relaxation of the main business scope of the insurance market, and the integration of the above insurance industry with other financial businesses reflects this regulatory change; Thirdly, the core of international insurance supervision has changed from comprehensive supervision to solvency supervision, and most countries are gradually liberalizing insurance rates. This international deregulation means that the global insurance market will be more open and the integration process of the insurance market will be further accelerated.

The guiding ideology of deregulation is to encourage and promote competition. Judging from the situation in China, due to the strict control of the insurance field in the past, the number of insurance enterprises is too small, the business field is too narrow, the management means are lacking, and the management level and efficiency of enterprises are too low. In the long run, China insurance industry is bound to face the challenge of opening to the outside world. In order to improve the competitiveness of China's insurance industry, it is necessary for the government to relax the control over market access, business scope and insurance products, encourage the innovation of insurance products and ensure market order. Actively encourage and promote the competition of insurance companies.

(2) Improve the level of insurance supervision.

In the way of supervision, it should be in line with international practice as soon as possible. Due to the late development of China's insurance industry, the insurance law promulgated by 1995 needs to be improved, the relevant supporting regulations have not been fully formulated, the China Insurance Regulatory Commission has not been established for a long time, and the supervision experience is insufficient, so the insurance industry self-discipline is being established. At present, insurance supervision is still at a low level. The main content of insurance supervision is the supervision of terms and rates, and the internationally accepted solvency supervision is basically blank in China. With China's imminent accession to the World Trade Organization, the entry of multinational insurance companies engaged in life insurance, non-life insurance and other financial services will further increase the difficulty of insurance supervision in China. Therefore, we should strengthen and improve our insurance supervision system as soon as possible. First of all, it is necessary to establish an insurance supervision mechanism with solvency as the core and establish a solvency index system to supervise insurance companies; Secondly, it is necessary to strengthen the supervision and strict examination and approval of domestic and foreign insurance companies, and effectively supervise their solvency through international alliances.

(3) Accelerate the development of investment business and strive to improve the efficiency of insurance investment.

Influenced by the traditional insurance thought, China's insurance theory and practice circles have long paid one-sided attention to the guarantee function of insurance and neglected the financial function of insurance, resulting in the long-term one-legged walk of insurance industry and the backward development of insurance investment. Specifically, the scale of insurance investment is small and the utilization rate of insurance funds is low; The structure of insurance investment is unreasonable, and the way of insurance investment is restricted; Insurance investment management is unscientific and investment efficiency is not high; Insurance investment supervision has too many restrictions and lacks flexibility. At present, the development of insurance investment in China is not suitable for the development trend of international insurance industry. With the intensification of competition in insurance business, the marginal profit of insurance has been negligible, and insurance investment will become the main source of insurance profit. Insurance investment is the foundation of insurance product innovation. Without investment, it is impossible to develop new products such as variable life insurance and universal life insurance. Facing the competitive pressure from multinational insurance groups with rich investment experience, we must accelerate the development of China's insurance investment. To this end, we should first strive to broaden the insurance investment channels. Under the condition that the internal control mechanism of insurance companies is basically perfect, the access restrictions of insurance investment methods will be gradually liberalized, so that insurance companies can participate in all investment tools in the financial market. Secondly, in terms of investment supervision, a more flexible supervision mechanism should be adopted. On the one hand, in order to prevent insurance companies from investing too intensively, different investment methods and individual investments are limited in proportion; On the other hand, we can keep some flexibility in the proportion limit and stipulate a certain proportion of free investment, so that insurance companies with sufficient capital can make a more suitable investment portfolio. Third, insurance companies should strengthen investment management and implement internationally accepted asset-liability management for insurance investment.

(4) encourage mergers and acquisitions.

Supporting large insurance companies and insurance groups with perfect operation mechanism and advanced management technology to strengthen a country's insurance strength and competitiveness in the international insurance market is mainly reflected in the strength of large insurance companies and insurance groups. Strong insurance companies are also the main force to counter foreign multinational insurance companies. To cultivate China's insurance industry, it is necessary to encourage insurance companies to merge and reorganize according to the market mechanism and improve the mechanism through policy guidance.

(five) to speed up the innovation and development of the insurance industry and improve the structure of insurance products.

Innovation is the source of life for the insurance industry. Without innovation, the development of insurance industry will stagnate. The innovation of insurance industry includes organizational innovation, product innovation, marketing innovation and management innovation, among which product innovation is the most important. At present, China's insurance products are similar, the insurance institutions are unreasonable and the market segmentation is not obvious. The marketing method is mainly agent sales. The management mode is extensive and inefficient.

In insurance marketing and management, we can widely carry out internationally accepted bank insurance, try online insurance, publicize and sell insurance products through the Internet, and strengthen risk management technology. In terms of product design and innovation, we should first change the current situation that the insurance market segmentation is not obvious, and design different types of insurance for different insurance objects to meet people's multi-faceted and multi-level insurance needs. China's huge rural elderly population basically has no old-age insurance, so how to open up a vast rural market is a big problem to be solved urgently. It is necessary to subdivide insurance liabilities, adjust insurance rates and reduce insurance costs. At present, the classification of risk liability in China's auto insurance market is too simple, and only two classification variables, vehicle use and vehicle type, are used, while 5-8 classification variables, including vehicle driving area, driver's age, gender and other variables, are usually used internationally, so it is fair to charge different rates for different variable combinations and avoid adverse selection. Secondly, we should carry out insurance innovation, introduce new western insurance varieties and transform them to suit our characteristics. In the form of insurance organization, we can try some other organizational forms such as insurance cooperatives.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.