Summary: Modern insurance has three functions: guarantee, financing and social governance. The security function is mainly embodied in spreading risks, economic compensation or payment, promoting social stability and so on. Abstract: Modern insurance has three functions: guarantee, financing and social governance. The security function is mainly embodied in spreading risks, economic compensation or payment, promoting social stability and so on. The function of financing is mainly reflected in the accumulation and use of funds; The function of social governance is mainly embodied in the role of social stabilizer, participating in social risk management, ensuring the transaction to start consumption, optimizing financial allocation, reducing economic disputes among social members, supplementing and perfecting the social security system and so on. The security function is accompanied by insurance, which is the essence and core of insurance, and is also a distinctive feature different from banks and securities. The function of financial intermediation and social governance is the derivative function of insurance based on its guarantee function with the development of economy. At present, China's insurance industry has played an important role in national economic and social development. The current international and domestic situation is very beneficial to the development of China's insurance industry, and there are great opportunities and potentials for the insurance function to play.
with the development of social economy, the progress of science and technology and the improvement of people's risk awareness, insurance, as an economic security system, has played an important role in safeguarding the economy, promoting reform, stabilizing the society and benefiting the people, and is known as the "safety net" and "exquisite stabilizer" of society. With the continuous extension of modern insurance's function in social and economic life, it is objectively required that the familiarity with its function should be gradually improved. This is of great significance to correctly grasp the development direction of China's insurance industry and integrate the sustainable development of the insurance industry into the national economic and social development.
1. Three functions of modern insurance and their relationships
Three functions of modern insurance
With the increasingly prominent position of the insurance industry in the national economy, insurance has gradually penetrated into all fields of social and economic life, and its functions have also been brought into unprecedented play. Modern insurance has at least three functions: guarantee, financing and social governance.
1. Guarantee function. This is the basic function of insurance, which is determined by the essential characteristics of insurance. This function is mainly reflected in the following aspects: spreading risks. In real life, people are inevitably faced with various risks, and the occurrence of risks is uncertain. Insurance is an effective risk transfer mechanism. People buy insurance, not because insurance itself has the characteristics of eliminating all kinds of risks, but because the insurance system can pass on all kinds of risks that people face and hand them over to insurance organizations that specialize in risk management, and people can get some economic compensation from insurance organizations after the established risk events, so as to get rid of the difficulties caused by risk events and relieve people's worries in production and life. Economic compensation or payment. That is, when the risk occurs, the insurer will pay compensation according to the actual loss amount of the insured property or the agreed amount within the agreed scope of responsibility, so as to ensure the continuous social reproduction process or avoid the insured and his family members from getting into trouble in life. Promote social stability. Maslow, a famous American psychologist, put forward the theory of five levels of human needs, namely, physiology, safety, love and belonging, respect and self-realization needs. Among them, safety needs include material labor safety and occupational safety, economic life stability and future security, psychological freedom from disaster threats and a sense of security. As an economic security system, insurance can make up for people's unfortunate losses, eliminate people's anxiety and fear about future life, and achieve the goal of stabilizing society by dispersing all kinds of risks faced by people and giving economic compensation for unexpected losses caused by risk accidents.
Numerous facts have proved that every disaster and risk outbreak, especially major disasters and risks, is often an important opportunity to give full play to the insurance protection function, because disasters can awaken people's risk awareness, which is the objective basis for the development of the insurance industry. Since the resumption of domestic insurance business, China has experienced numerous major natural disasters, and each outbreak of major disasters has brought a peak in the development of the insurance industry. In 23, the SARS epidemic raged, which promoted the rapid development of the insurance industry. Because of the spread of SARS epidemic, people's health awareness and risk protection demand were greatly stimulated, and people's familiarity with the insurance protection function was more profound. For example, from January to April 23, the health insurance premium income of life insurance companies reached 5.53 billion yuan, accounting for 4.78% of the total personal insurance premium, an increase of 69.67% over the same period of last year, and the growth rate far exceeded the pension insurance and life insurance business. It can be seen that insurance, as an economic security system, has been gradually accepted by people.
2. Financing function. This is the derivative function of insurance, which is derived from the basic function of insurance. This function is becoming more and more prominent with the rapid development of modern insurance industry, especially life insurance industry and the continuous improvement of financial environment. The so-called financial intermediation refers to the process of accumulation, circulation and distribution of funds, and the financial intermediation function of insurance mainly refers to the accumulation and application function of insurance funds. Specifically: the accumulation of funds. Insurance companies mainly attract and accumulate social idle funds by selling insurance products and other channels, and urge social funds to flow from various industries to insurance companies. The accumulation function of insurance funds has a certain diversion effect on social savings and is conducive to the transformation from savings to investment. The use of funds. The long-term nature of insurance business makes it possible for insurance companies to use funds. In order to ensure the adequacy of future solvency and the stability of operation, insurance companies must use funds to improve the rate of return of insurance funds, which is mainly achieved by the flow of insurance funds from insurance companies to the capital market, and insurance companies become important institutional investors in the capital market.
the function of financing is closely related to the degree of development of financial markets. In the "bank-dominated" traditional financial market, the allocation of financial resources is mainly accomplished through indirect financing of banks, and the function of insurance on the allocation of financial resources is greatly suppressed. With the development of economy, especially the rapid development of financial innovation, the space for the function of insurance financing is very broad. The insurance industry has occupied a very important position in the financial market, is an important participant in asset management and the stock market, and holds a large proportion of listed companies' shares with a high market value. For example, in 1998, 4% of the world's investment assets were managed by insurance companies, and the market value of listed companies held by insurance companies accounted for 25% in the United States, 4% in Europe and 5% in Japan.
due to the large-scale and long-term characteristics of insurance funds, giving full play to the financing function of insurance funds can, on the one hand, accumulate a large amount of social funds, increase the channels for converting residents' savings into investment, and disperse the financial risks caused by excessive concentration of residents' savings in banks, which is conducive to optimizing the allocation of financial resources and improving the efficiency of financial resources allocation. On the other hand, it can provide long-term and stable financial support for the healthy development of the capital market and improve the structure of the capital market; At the same time, it can also provide an effective risk sharing mechanism for insurance funds to meet the requirements of insurance funds for safety, liquidity and profitability, so as to realize the organic combination and coordinated development of insurance market and capital market. It is precisely because insurance has the function of financing and then has the financial attribute that the insurance industry, together with the banking industry and the securities industry, has become the three pillars of the financial industry.
3. Social governance function. The governance of modern insurance for society is different from the "other-self governance" with the country as the main body, and it is also different from the departmental governance in politics, economy, culture and other aspects. Instead, it can promote and coordinate the normal operation and orderly development of all fields of society through the exertion of its functions, that is, it plays the role of "social lubricant". Social governance function is another derivative function of insurance. With the continuous consolidation and enhancement of the position of insurance industry in social development, this function is increasingly prominent. It is mainly manifested in the following aspects: on the one hand, by exerting the function of economic compensation or payment, insurance funds realize social redistribution among the insured, on the other hand, it provides strong economic guarantee for social and economic development and people's lives, irones out the unstable factors in social development, and objectively plays the role of social stabilizer. Participate in social risk management. The business object of insurance is risk, and the risk management of insurance is mainly reflected in the work of disaster prevention and loss prevention. Its biggest feature is to actively participate in and cooperate with the social disaster prevention and loss prevention departments to carry out disaster prevention and loss prevention work. On the one hand, it can effectively assume the social responsibility of risk management, which is conducive to enhancing solvency, reducing the cost paid by policyholders and improving their own economic benefits. On the other hand, by accumulating a large number of loss statistics, it can provide a reliable basis for social disaster prevention and loss prevention departments to carry out risk management, and at the same time, it can cultivate the risk prevention awareness of policyholders and reduce the loss of social wealth as much as possible. Secure transactions and start consumption. Under the condition of market economy, both parties to a transaction often face various risks, especially credit risks, and the existence of risks will hinder the beneficial conduct of business transactions. Because of the intervention of insurance, the risks in the transaction process can be passed on to the insurance company, which can not only improve the credibility of both parties to the transaction, reduce disputes or differences between the two parties to the transaction, and promote the success of the transaction, but also start potential social consumption and expand domestic demand, such as export credit insurance, housing mortgage insurance, automobile consumption loan guarantee insurance and so on. Optimize the allocation of financial resources. For example, the function of insurance financing, on the one hand, diverts social savings, realizes the transformation from savings to investment and disperses financial risks by accumulating a large number of social idle funds, on the other hand, it plays an irreplaceable role in promoting capital flow and realizing the rational allocation of financial resources in the whole society by using funds. Reduce economic disputes among members of society. With the enhancement of people's legal awareness, liability insurance has developed rapidly. For example, motor vehicle third-party liability insurance can help victims get timely treatment and economic compensation, reduce economic disputes between perpetrators and victims, and thus play a role in stabilizing society. Complement and improve the social security system. The social security system is known as the "social shock absorber", which provides the society with basic economic security such as pension, medical care, unemployment and assistance. Commercial insurance, on the other hand, provides high-level and multi-level security services for the society, which can meet people's growing and diversified security needs and is an important supplement and improvement to the social security system.
correctly understand the relationship between the three functions
among the three functions of modern insurance, the safeguard function is accompanied by insurance, which is the essence and core content of insurance, and is also a remarkable feature that distinguishes insurance from banks and securities; The function of financial intermediation and social governance is the derivative function of insurance based on its guarantee function with the development of economy. There is an essential and derivative relationship among them. In short, the former is the foundation and premise, which is in a dominant position, while the latter two are produced from the former and serve the former, which are in a subordinate position, and their main duties are to continuously improve the content of the former and expand its influence. With the gradual development of insurance derivative functions, such as the innovation of investment insurance products, in practice, some people constantly weaken or even ignore the most essential function of insurance-guarantee function, overemphasize the investment function of insurance and exaggerate the investment return rate of insurance products, which just ignores the huge demand of consumers who have just got rid of food and clothing for guaranteed insurance products and easily induces insurance consumers to form an irrational consumption concept of "light protection and heavy income", which is manifested in the following aspects: when consumers buy insurance products, This has a negative impact on the long-term development of China's life insurance industry.
II. Functions of China's insurance industry in social development at this stage and its influencing factors
China's insurance industry has played an important role in national economic and social development
Since the resumption of domestic insurance business in 198, China's insurance industry has been rapidly restored and developed under the correct leadership of the Party Central Committee and the State Council. Especially since the reform and opening up, with the establishment of socialist market economy, deepening reform and opening up, the national economy and social undertakings have made great progress, which has brought extremely rare development opportunities to the insurance industry. The overall strength and comprehensive competitiveness of the insurance industry have been continuously enhanced, and its position in the national economy has been continuously improved, which has played an important role in promoting economic development, expanding employment and stabilizing society. Mainly manifested in: the guarantee function has been effectively played. Since the reform and opening up, China's Chinese-funded insurance industry has developed by leaps and bounds, and its guarantee function has become increasingly prominent. In 22, the domestic insurance depth was 3%, the insurance density was 237.6 yuan, the total amount of risks insured was 53,34.6 billion yuan, and the insurance industry paid more than 7 billion yuan. Especially in the catastrophic natural disasters and social emergencies, such as the catastrophic flood in 1998, the two air crashes in 22 and the fight against SARS in 23, insurance companies timely organized compensation or timely launched insurance products and services to meet people's needs, which effectively played the economic compensation function of insurance. The financial intermediation function was further strengthened. Finance is the core of modern economy, and insurance is an important part of finance. In 22, the domestic premium income was 35.31 billion yuan, accounting for 3.5% of the balance of residents' savings, and the balance of funds available in the insurance industry reached 579.9 billion yuan. Insurance has played a certain role in diverting social savings and gradually occupied a place in the capital markets such as national debt and securities investment funds. The function of social governance is increasingly prominent. With the sustained development of the domestic economy and the deepening of the reform of the social security system, people's demand for pension, medical care, health and unemployment is increasingly urgent, and the role of modern insurance in stabilizing society will become more and more important.
favorable factors to promote the full play of the functions of the insurance industry at this stage
1. The 16th National Congress of the Communist Party of China put forward that "development must be the top priority of our party in governing and rejuvenating the country", which is the deepening and expansion of Deng Xiaoping's thought that "development is the last word" and has important guiding significance for accelerating the development of China's insurance industry. Moreover, the 16th National Congress of the Communist Party of China has established the goal of realizing a well-off society in an all-round way in the first two decades of this century and basically realizing socialist modernization by the middle of this century. The new target contains a number of comprehensive indicators, such as the growth of economic aggregate, the improvement of economic system, the improvement of people's living standards and people's all-round development, and contains the profound connotation of all people's enjoyment and all-round progress. All walks of life need to work together to accelerate development, and the insurance industry, as a social stabilizer, is no exception. The rapid development of the national economy, the overall progress of society and the continuous improvement of people's living standards require the insurance industry to provide all-round and multi-level security services, which puts forward new historical requirements for the insurance industry and also provides a rare development space for the insurance industry.
2. At present, China is in the period of economic system transformation. The gradual establishment of the socialist market economic system and the deepening of various reforms have provided a huge space for the effective function of the insurance industry. In our country, with the aging population and miniaturization of family structure, people's concept of raising children to prevent old age has changed. At present, the social security system is undergoing profound changes, and the original idea of relying on the state and units for old-age care and medical care has to be changed, thus the development of commercial insurance.