Insurance Information Management

Author: Zhang Hongtao Wang and
Publisher:
Publish Date: 2006-03-01
Features: Since the reform and opening-up, China's insurance industry has been on a high-speed development track. Both the scale of the insurance market and the number of market participants have achieved unprecedented growth. The insurance regulatory system and legal system have been initially established and are gradually improving. With the deepening of the socialist market economy, especially after joining the World Trade Organization, the further expansion of China's economic opening-up and the acceleration of the process of economic globalization have made the prospects for the development of China's insurance industry broader and the challenges more severe. The development of insurance is highly dependent on information. From the insurer's perspective, based on the law of large numbers, insurance can bear the uncertainty of risks transferred by policyholders, which are insurable risks. However, according to the research on information economics, due to information asymmetry, adverse selection and moral hazard are widespread in the insurance market, causing insurers to bear a large amount of certain risks, which affects the survival and development of insurers. To solve this problem, insurers need to, on the one hand, set appropriate terms to incentivize policyholders to provide truthful declarations and fulfill their due diligence; on the other hand, they need to use advanced technology to collect as much rich information as possible to segment risks and improve management and operational levels. From the experience of insurance markets in developed countries, information management capabilities are an important component of the core competitiveness of insurance companies.