The Korea Financial Supervisory Institute is the supervisory body of all financial institutions in Korea, which consists of the Banking Supervision Bureau, the Securities Supervision Bureau and the Insurance Supervision Bureau. According to the requirements of the insurance law of South Korea, insurance companies should submit statistical statements including business, financial status, capital utilization results, solvency and other contents to the Insurance Supervision Bureau of the Financial Supervision Institute on time. The format, preparation period and reporting period of statistical statements shall be stipulated by financial supervision institutions. Based on these statistical reports, the Financial Supervisory Institute prepares statistical analysis reports reflecting the overall operating conditions of insurance companies, calculates and evaluates the operating conditions of insurance companies on a quarterly basis, and establishes an early warning index system. Details are as follows:
1. Contents of statistical report. The statistical statements to be submitted by insurance companies are divided into six categories: basic information, financial status, business control compliance status, regional status, internal control and statistical questionnaire survey, including institutions, personnel, shareholding status of major shareholders, operating efficiency indicators, contract maintenance rate, asset utilization rate, capital adequacy ratio, asset robustness, profitability and liquidity. By the end of March 2006, property insurance companies and life insurance companies had submitted a total of 28 statistical statements 1 to the financial supervision office (see table1).
Judging from the frequency of submitting statistical reports, the monthly statistical reports are mainly financial reports, accounting for about 51%of all reports; Statistical statements, reinsurance transactions and financial derivatives transactions are submitted quarterly, accounting for 43% of all statements. Statistical reports on the current situation in different regions are submitted every six months to grasp the operational efficiency indicators such as the occupational stability rate of insurance designers, accounting for 3.1%of all reports; The annual report is mainly based on the final accounts of the fiscal year, accounting for about 2.3% of the total report.
2. Submit statistical reports. In February of 2000 1 and1,the Korea Financial Supervisory Institute established a financial information exchange network (FINES) based on the Internet, through which statistical reports submitted by insurance companies were collected and verified. The specific process is as follows: firstly, the insurance company prepares statistical statements in a prescribed format and sends them to the financial supervision office through the financial information exchange network. The financial information exchange network has the function of checking the items of statistical statements and checking each other between statements. The transmitted data is stored in the database of the financial supervision information system after data error checking, and the data is calculated and processed in the database to form statistical results (see figure 1).
Statistical reports submitted by insurance companies
3. Use of statistical data. The statistical data formed by the Korea Financial Supervisory Institute is used to evaluate the operating conditions of insurance companies and understand and master the development of the insurance industry. The second is to understand the risk level faced by the insurance industry and individual insurance companies and the possibility of poor management in the future. Through time series analysis, etc. , can grasp the abnormal change index, and take the preemptive response strategy to the poorly managed companies. Through statistical methods such as classification evaluation model or discriminant analysis, the insurance company is warned. Third, the specialized managers of insurance companies in the financial supervision office make a package of inquiries about the general situation of the companies in charge, insurance marketing and investment management, contract preservation and solvency, so as to facilitate daily supervision and on-site inspection. The fourth is to submit or disclose statistical information. Information release mainly releases statistical information by releasing monthly financial statistics and insurance statistics on the website (see Table 2).
Use of statistical data
4. The Korea Financial Supervisory Institute severely deals with violations of statistical laws and regulations. According to the insurance law of Korea, if an insurance company fails to submit financial statements within the time limit or submits false financial statements, the regulatory authorities may impose a fine of less than 1 10,000 won, and may hold the relevant personnel accountable. South Korea also has relevant laws and regulations: anyone who commits one of the following acts shall be sentenced to fixed-term imprisonment of not more than five years or a fine of not more than 30 million won.
-intentionally omitting or lying about important matters in quarterly (interim) reports and business reports.
-The signatory intentionally omits or misrepresents important matters in quarterly (interim) reports and business reports.
(2) Insurance statistics of the Insurance Development Council.
The Korea Insurance Development Institute is an institution established according to Article 176 of the Insurance Law, which stipulates the necessity of statistical work of the Insurance Development Institute, the assistance obligation of insurance companies, and the methods of providing statistical data. The main purpose is to protect the interests of the parties to the insurance contract and promote the healthy development of the insurance industry. The main responsibilities of the Development Institute are to determine the pure insurance premium rate, confirm the insurance commodity (the appropriateness of insurance premium and liability reserve), study the insurance system and policy, analyze the insurance market, conduct business analysis and consultation, summarize and analyze the statistics of insurance experience data, manage and utilize insurance information, and operate the insurance information network. The contents of insurance statistics of Development Institute are as follows:
1. Contents and submission deadline of statistical data. The statistics of the Development Institute are based on the detailed information of every insurance contract and every insurance accident. Taking fire insurance as an example, the Development Institute requires insurance companies to submit many detailed information such as contract number, approval number, processing date, insurance period, subject matter category, insurance amount, insurance premium, discount and price increase of each insurance contract. The insurance accident data requires the submission of detailed information such as contract number, approval number, processing date, accident number, accident date, risk level, subject code, subject category, accident cause, insurance amount, loss amount and insurance liability category. According to the size of the premium, it is divided into basic statistics and summary statistics. Motor vehicle insurance, fire insurance, water insurance, life insurance and other insurance products with high premiums 15 belong to basic statistical data, and the summary period is monthly, quarterly, semi-annual and annual. Other smaller types of insurance belong to the scope of summary information, which can be summarized once a year. Korea Development Institute has a history of more than 20 years.
2. Collect, summarize and verify statistical information through the insurance information network. The insurance information network consisting of * * * information system, data transmission system, insurance accident information system and international trade EDI system is the main channel for collecting insurance statistical information. The insurance information network is a part of the national computer backbone network, which is connected with all insurance companies, relevant authorities, local autonomous organizations and industry networks through the Insurance Development Institute. South Korea's insurance statistics summary is divided into two parts: insurance contract summary and each accident summary, which are carried out in different ways. See Figure 2 for the summary of insurance contracts of large-scale insurance types and the data of each accident.
The purpose of checking statistical data is to check whether the Development Institute has compiled the data accurately according to the requirements of statistical compilation. Through balance check, project check, distribution check and other means. When the insurance company is found to be substandard, it is required to correct it. Balanced retrieval is to check the accuracy of data, and insurance companies and insurance development institutes check the number and amount of records of attachment data. Project retrieval is to confirm whether there is inappropriate data in each compiled project based on basic statistics, and to confirm data errors by comparing related projects. Distributed retrieval is to compare the performance of object data with the past performance to confirm whether there is abnormality.
3. Requirements for compiling statistical data. The requirements for compiling statistical data consist of four parts. The first is the description of the record submission method and the record unit. Second, the format is composed of insurance voucher number, accounting date and other record management items, risk characteristics of the contract involved, premiums, insurance benefits and other items. Thirdly, the compilation methods of format items are explained in detail. The fourth is to sort out the codes used in compiling records.
4. Utilization of statistical data. Using the collected insurance statistical data, the Institute compiled the empirical life table and the empirical hospitalization rate, and calculated the insurance rate (risk rate). According to contract statistics, compensation statistics and payout ratio statistics, compile and provide statistical data classified by insurance year/commodity type/contract commodity/age/occupation/region. Handle motor vehicle insurance, industrial injury insurance, etc. , to provide insurance companies with the trend characteristics of each contract. Publish and distribute monthly insurance statistical reports, annual reports, yearbooks, statistical data sets classified by insurance types and other irregular analysis and statistics. Establish and operate insurance accident information system and motor vehicle history information system. From the modern marine fire insurance company, we know that the insurance company can obtain and use the statistical data of the development institute to analyze the company's operation, adjust the insurance premium and evaluate the historical data results.
Second, the role of statistics in the development of insurance industry in Korea
(1) Insurance statistics are the basis for the development of the insurance industry.
From the above introduction, we can know that insurance statistics plays a strong supporting role in the insurance industry in Korea and is an important pillar of insurance supervision and management. The statistical data compiled according to the insurance statistical report is applicable to all aspects of financial supervision institute, insurance development institute and insurance company. From a big perspective, it is the basis for the whole industry to measure and evaluate the operating conditions of insurance companies, and it is also the basis for insurance companies to classify and warn. From a small point of view, it is the basis for determining the pure insurance rate, making the empirical life table, the appropriateness of insurance premium and liability reserve, and evaluating the target index.
(2) Insurance statistics have a wide range and many contents.
South Korea's insurance statistics have a wide range and rich connotations. For example, from the statistical statements submitted by insurance companies to the Insurance Regulatory Bureau of the Financial Supervisory Institute on a regular basis, it includes not only statistics in general business processes such as business finance, but also important matters such as shareholder change, related party transactions, internal control, questionnaire surveys and financial accidents, as well as various business records. With these statistical reports, the Institute of Financial Supervision can establish a package of statistical indicators to comprehensively analyze and measure the operating conditions and basic conditions of various insurance companies. For another example, the insurance contract information submitted by the insurance company to the Insurance Development Institute is very detailed, including not only basic matters such as company code, time, contract status number, approval number and insurance period, but also risk characteristics such as structural level, clause code and clause category, as well as insurance coverage, reasons for premium discount or price increase, and changes in premium correction. It is based on the statistical data of every insurance policy and every insurance accident.
(3) Insurance statistics plays an important role in strengthening the enjoyment of resources in the whole insurance industry and making the insurance business refined and scientific.
The development of modern insurance is largely based on the application of the law of large numbers and other principles. Using insurance statistics, we can share resources among companies, establish a database of payout ratio and payout ratio in the whole society, and provide different differential rates for different groups of people or different insurance objects, which is very beneficial to the scientific and steady operation of the entire insurance industry. South Korea's Insurance Development Institute plays a unique role in this respect.
1. Calculation and verification of insurance premium rate. The Development Institute uses the relevant information of insurance contracts submitted by various insurance companies. In the life insurance industry, the empirical life table and the empirical hospitalization rate are compiled mainly for the target accident rate of life insurance and medical insurance, which are used by life insurance companies in determining insurance rates. The empirical life table is generally compiled once every three years. In the property insurance industry, it is mainly to calculate the loss rate of various social risks and calculate the insurance premium rate of the whole industry according to the sub-standard.
2. Establish an industry underwriting data database. According to insurance contract statistics, compensation statistics and payout ratio statistics, the Institute of Insurance Development compiles and provides statistical data classified by insurance year, commodity type, contract item, age and occupation of the insured, geographical distribution and other factors, and provides the contents of these risk factor databases to insurance companies for reference. Regular and systematic information exchange between insurance companies is helpful to determine the compensation for actual losses, exchange information and prevent and eliminate insurance fraud.
3. Establish rate grades to reflect the structural differences of rates. The Insurance Development Institute also determines different rates according to the specific conditions of each party. For example, the development institute should provide insurance companies with the trend characteristics of insurance contracts for major types of insurance, such as motor vehicle insurance and industrial injury insurance.
(D) Insurance statistics play a unique role in reflecting social management functions.
Automobile is one of the important basic means of transportation in modern society. Automobile industry occupies a very important position in the economic and social development of the whole country, which is closely related to modern enterprises and human beings. In addition, automobile insurance is compulsory. Therefore, motor vehicle insurance statistics have played a very important role in promoting the healthy development of the automobile industry and safeguarding the interests of the vast number of policyholders. For example, Korea Insurance Development Institute began to count the contents of insurance contracts from motor vehicles, starting from July 1985 at the earliest. Through the computer network of compulsory motor vehicle insurance management, the Insurance Development Institute connects the departments in charge of the automobile industry such as the Ministry of Construction and the Ministry of Communications in 256 cities, counties and districts across the country, informs them of the list of cars that are not covered by liability insurance, and shares the information of traffic offenders with the transportation department. In addition, the Insurance Development Institute also actively supports social welfare activities by building and operating the insurance accident information system and the motor vehicle history information system through statistical data.
Third, the enlightenment of Korean insurance statistics to China
(1) Continue to strengthen insurance statistics.
In recent years, China's insurance statistics work has made remarkable achievements, and some progress has been made in system construction, standard construction, means innovation and staffing. However, compared with other industries, the statistical work of modern insurance industry based on the law of large numbers is more prominent and urgent. Whether it is to strengthen the supervision of insurance solvency, prevent and resolve insurance business risks, scientifically and reasonably determine insurance rates, or actively develop new types of insurance to expand insurance coverage, it is inseparable from the support and guarantee of insurance statistics. Therefore, we should continue to attach importance to and strengthen the insurance statistics work of regulatory agencies, at the same time, we should also strengthen the guidance to insurance companies, actively urge them to effectively strengthen the basic work of insurance statistics, and give priority to further promoting the development of insurance statistics work in terms of institutional setup, staffing and funding arrangements.
(2) Further strengthen the construction of statistical laws and regulations.
South Korea's rich scientific statistical content, unified and coordinated statistical system, highly centralized data management, efficient and advanced statistical platform and high-quality statistical team are of great help to expand our innovative statistical work ideas. Therefore, it is suggested that the responsibilities and requirements of insurance statistics should be further clarified in combination with the favorable opportunity of the revision of China's Insurance Law, so as to provide legal guarantee for the smooth development of insurance statistics.
(3) Improve the contents of insurance statistics as soon as possible.
Since the development and use of the insurance statistical information system, a lot of work has been done in collecting, summarizing and analyzing the financial and business data of insurance companies, especially in centralized data management and efficient query and use. However, compared with the current situation of extensive insurance statistics in Korea, there are still many problems in China's insurance statistics, such as less data, incomplete content, fragmentation and so on. Therefore, it is suggested to learn from the advanced practices of insurance statistics in South Korea, especially the advanced practices of detailed statistics on the contents of insurance contracts and the information of each compensation accident, supplement and improve the contents and scope of insurance statistics as soon as possible in accordance with the principle of doing things according to one's ability and step by step, and make records of insurance contracts, insurance institutions and insurance employees.
(4) Innovating insurance statistical means.
Statistical work is closely related to IT informatization construction, and modern IT information technology is an important means to do insurance statistical work well. The amount of information and workload of statistical data of insurance industry in China is far greater than that of Korean Insurance Development Institute. Therefore, it is imperative to further improve China's insurance statistical information system on the basis of absorbing foreign advanced technical experience. At the same time, rr technical requirements for the collection, transmission and management of statistical information are put forward for insurance companies, so as to promote the greater development of insurance statistics by using advanced technical means.
(five) to strengthen the centralized management of insurance statistics.
Judging from the actual development of China's insurance industry in recent years, the insurance industry has initially accumulated some industry data, but the insurance regulatory agencies have not done enough to guide and assist insurance companies to accumulate public data of the whole industry, especially there are still some problems in the centralized and unified management of insurance-related data. Judging from the management mode of insurance statistics in Korea, the regulatory authorities collect relevant insurance statistics in a centralized and unified way and enjoy them within the organizational system. Therefore, it is suggested that the CIRC further clarify the unified concentration of insurance statistical data in China, avoid the multi-head management of statistical data and statistical analysis data, strengthen the consistency of data and analysis basis, and realize the unification and standardization of data. Realize the unified sharing of data resources in the insurance industry from the aspects of business development, solvency assessment, risk management and policy research, and effectively reduce the workload of insurance companies submitting data to the regulatory authorities repeatedly.
(six) to strengthen the law enforcement inspection of insurance statistics.
The authenticity, consistency and integrity of data are the basis and prerequisite for formulating insurance industry policies. According to the investigation in South Korea, the design and pricing of insurance products, solvency evaluation, insurance reserve withdrawal, reinsurance arrangement and asset-liability management all need to accumulate many years of underwriting and claim settlement historical data. It will take at least five years for these data to have corresponding effects, and the accuracy, timeliness and completeness of the data are very important. In accordance with the provisions of the insurance law, the Korea Insurance Regulatory Bureau often checks and verifies the statistical data reported by companies, mainly by checking with the previous historical data of companies, comparing with the corresponding data of other companies, and conducting on-site inspections on insurance companies to ensure the authenticity and accuracy of the data, imposing corresponding penalties on the insurance companies with problems, and directly investigating the responsibilities of company executives, which has important reference significance for us to strengthen the inspection of insurance statistics law enforcement and implement corresponding administrative penalties.
(seven) do a good job in the standardization of insurance data.
To do a good job of data collection, data management, decision support and analysis in insurance statistics, we must first solve the problem of insurance data standardization. At present, the systems of domestic insurance companies are independent of each other, with great differences, different statistical caliber and different databases. The most fundamental reason for these problems is that statistical data standards are imperfect or even missing. Therefore, we should seize the favorable opportunity of insurance standardization construction, adopt the principle of "emergency first", and first make great efforts to solve the main problems such as the lack of insurance basic data standards and data interface standards.
(eight) to speed up the construction of statistical institutions and statistical teams.
Insurance statistics work is very professional and comprehensive, and it also requires very high quality of cadres. The statistical team of China's insurance regulatory agencies can not meet the requirements of statistical work in terms of personnel and overall quality. Therefore, it is suggested to speed up the construction of statistical institutions, increase the number of statisticians and improve the overall quality of statistical teams to meet the needs of making the insurance industry bigger and stronger.
Author: China Insurance Regulatory Commission Pei Guang China Insurance Regulatory Commission Ningxia Supervision Bureau Liu Peiyuan, School of Economics, Sichuan University.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.