By Tian Hui, Research Institute of Finance, DRC

Research report No.161, 2017 (Total 5236) 2017-11-29

Abstract: At present, there are two diametrically opposite attitudes toward small- and medium-sized life insurance companies in China. We need to hold a correct and dialectical view to their development. The international experience shows that small life insurance companies with integrated operation and management do exist, and small companies are not necessarily high-risk companies. However, China’s present regulatory rules and institutional factors are not conducive to the development of these small life insurance companies. The survival pressure, the lack of drivers, the relatively limited development room and the weak points at the initial development stage have all led to the alienation of the behavior of small- and medium-sized life insurance companies in China and quickly pushed up the industrial risks. In short, the current problems of small- and medium-sized life insurance companies in China are due to their inadequate development and specific environment at present time. We should not deny the significance of small- and medium-sized life insurance companies, let alone demonize them. However, the prominent issues have pointed to the necessity and urgency of reform and transformation. Transformation depends not only on the insurance companies’ own efforts, but also on the improvement of regulatory and institutional framework.

Key words: life insurance, small- and medium-sized life insurance company, development, risk, small and beautiful