October 8, 2017
As the last risk defending line of the insurance industry, Insurance Security Fund System acts like an important symbol of a mature insurance market. The insurance security fund of China is set up in accordance with relevant provisions including the Insurance Law and the Measures for the Administration of Insurance Security Fund, in order to relieve risks of the insurance industry. When an insurance company generates a major risk that may seriously endanger the public interests and financial stability, the insurance security fund shall be timely used to provide policyholders with the relief service or to deal with the corresponding risk. It can be said that the insurance security fund makes insurance policies safer. During the market-oriented reform of China's insurance industry, especially the establishment of the market exit mechanism, the Insurance Security Fund System is there to play an important part.
The management of China's insurance security fund has undergone three stages: enterprise retention stage, centralized management stage and corporative operation stage. To raise, manage and use the fund, in 2008, China Insurance Security Fund Co., Ltd. (“CISFC” for short) was established in accordance with the Measures for the Administration of Insurance Security Fund promulgated jointly by China Insurance Regulatory Commission, the Ministry of Finance of the PRC and the People's Bank of China. The purpose of it is to provide public services, and act as a tool of the regulators to prevent and resolve industry risks. Bearing its mission and responsibility, CISFC will always take the path to serve "the insurance supervision, the healthy development of the industry, and the insurance consumers", as well as to dutifully safeguarding the legitimate rights and interests of insurance consumers. It can be said that the Insurance Security Fund System and CISFC are adhering to insurance regulatory policies, while staying close to insurance consumers and insurance companies.