(I) Insurance Statistics of the Financial Supervisory Service
The Financial Supervisory Service of Korea (FSSK) is the supervisory organization for all financial institutions in Korea, and has the Banking Supervisory Bureau, the Securities Supervisory Bureau, and the Insurance Supervisory Bureau, etc., within it. In accordance with the requirements of the Korean Insurance Act, insurance companies are required to submit statistical reports on business, financial situation, results of capital utilization, and solvency to the Insurance Supervision Bureau of the Financial Supervisory Service on a timely basis. The format, preparation cycle, and reporting period of the statistical reports are prescribed by the Financial Supervisory Service (FSS). Based on these statistical reports, the Financial Supervisory Service prepares statistical analysis reports reflecting the overall operating conditions of insurance companies, measures and evaluates the operating conditions of insurance companies on a quarterly basis, and establishes a system of early warning indicators. The details are as follows:
1. The statistical reports*** to be submitted by each insurance company are divided into six categories, including basic information, financial status, business control compliance status, regional status, internal control and statistical questionnaires, which include indicators such as institutions, personnel, status of shareholding by major shareholders, operational efficiency indicators, contract maintenance ratio, asset utilization ratio, capital adequacy, asset soundness, profitability, liquidity, and so on. As of the end of March 2006, property-casualty insurance companies and life insurance companies had submitted 128 statistical reports to the Financial Supervisory Service (FSS) respectively (see Table 1).
In terms of the frequency of submission of statistical reports, statistical reports mainly on financial statements, etc. were submitted on a monthly basis, accounting for about 51% of all reports; statistical reports for the purpose of measuring and evaluating business conditions such as the appropriate ratio of capital and the soundness of assets, as well as statistical reports on the status of reinsurance transactions and financial derivatives transactions were submitted on a quarterly basis, accounting for 43% of all reports; and statistical reports for the purpose of Statistical reports on the status of different regions for the purpose of measuring and evaluating management efficiency indicators such as the career stability rate of insurance designers are submitted on a semi-annual basis, accounting for 3.1% of all reports; and statistical reports on the status of financial yearly accounts are submitted on an annual basis, accounting for approximately 2.3% of all reports.
2. Submission of Statistical Reports In December 2001, the Financial Supervisory Service of Korea established the Financial Information Exchange Network (FINES) using the Internet to collect and verify statistical reports submitted by insurance companies. The process is that insurance companies prepare statistical reports in the prescribed format and transmit them to the Financial Supervisory Service through the FINES network. The Financial Information Exchange Network has the function of validating statistical reports between items and between reports, and the transmitted data are stored in the database of the Financial Supervisory Information System after being validated for data errors, where the data are calculated and processed to form statistical results (see Figure 1).
Statistical Reports Submitted by Insurance Companies
3. The statistical information formed by the Korea Financial Supervisory Service is used, first, to evaluate the operating conditions of insurance companies and to understand and grasp the development of the insurance industry. Secondly, it is used to understand and grasp the level of risk faced by the insurance industry and individual insurance companies and the possibility of future mismanagement. Through time-series analysis, etc., we are able to grasp the indicators of abnormal changes, so that we can take pre-emptive countermeasures against companies that are not doing well. Early warning of insurance companies is provided through statistical methods such as classification and rating models or discriminant analysis. Thirdly, the specialized supervisors of insurance companies in the Financial Supervisory Authority can make blanket inquiries about the general situation of the companies under their charge, the current status of insurance marketing and investment operations, the status of contract preservation, and the status of solvency, etc., so as to facilitate the conduct of routine supervision and on-site inspection operations. Fourth, reporting or disclosing statistical information externally. Information release is mainly through the issuance of monthly financial statistics reports and the release of insurance statistics on the website and other forms of statistical information (see Table 2).
Use of statistical information
4. The Korean Financial Supervisory Authority deals with violations of statistical regulations more severely. The Korean Insurance Act stipulates that if an insurance company fails to submit financial statements, etc., within the deadline, or submits false financial statements, etc., the regulator can impose a fine of up to KRW 10 million, and can hold the relevant personnel accountable. In Korea, there are also regulations that provide for imprisonment of up to five years or a fine of up to 30 million won for any of the following acts.
-Willful omission or misrepresentation of important matters in quarterly (interim) reports and business reports.
-Anyone who signs the quarterly (interim) report and business report with knowledge of intentional omission or misrepresentation of important matters in the quarterly (interim) report and business report.
(2) Insurance Statistics of the Insurance Development Institute
The Korea Insurance Development Institute (KIDI) is an organization established under Article 176 of the Insurance Business Act, which stipulates the necessity of the statistical work of the KIDI, the obligation of insurance companies to provide assistance, and the method of supplying statistical information. The main purpose is to protect the interests of the parties to insurance contracts and to promote the healthy development of the insurance industry. The main duties of the IDA are to determine pure insurance premium rates, confirmation of insurance commodities (appropriateness of insurance premiums and liability reserves), research on insurance systems and policies, analysis of the insurance market, business analysis and consulting, aggregation and analysis of statistical data on insurance experience, management and utilization of insurance information provided, and operation of the insurance information network. The contents of IDA's insurance statistics are as follows:
1. The contents of the statistics and the reporting cycle. The content of IDA's statistics is based on the details of each insurance contract and each insurance incident. Taking fire insurance as an example, the Development Institute requires insurance companies to submit a number of detailed information on each insurance contract, such as contract number, endorsement number, date of processing, period of insurance, type of subject matter, amount of insurance, premium, discounts and markups, and so on. Insurance accident information requires the submission of detailed information such as contract number, batch number, date of processing, accident number, date of accident, risk level, subject code, subject category, cause of accident, insured amount, incurred loss amount, and insurance liability category. Depending on the size of the premium, it is categorized into basic and summary statistics. The 15 types of insurance with large premiums, such as motor insurance, fire insurance, marine insurance and life insurance, are all basic statistics, and the summarization cycle can be monthly, quarterly, semi-annually and annually. Other smaller types of insurance are summarized once a year. The KDA has been summarizing insurance policies of insurance companies for more than 20 years.
2. Statistical information is collected, summarized and verified through the Insurance Information Network. The Insurance Information Network (IIN), which consists of the ****same information system, the data transmission system, the insurance accident information system, and the EDI system built for international trade transactions, is the main channel for collecting insurance statistical information. The Insurance Information Network is part of the national backbone computer network, and is connected by the Insurance Development Institute to all insurance companies, related organizations, local governments and trade networks. The summarization of Korea's insurance statistics is carried out in two parts, namely, the information on insurance contracts and each accident, and the summarization of summary information, in different ways. The summary of insurance contracts and per-accident information for large insurance types is shown in Figure 2.
The purpose of the verification of statistical information is to check whether the information is accurately compiled by the Development Institute in accordance with the requirements for statistical compilation. Methods such as implementation of balancing tests, item tests, and distribution tests are used to request corrections from insurance companies when they are found to be not up to standard. Balance searches are conducted to check the accuracy of the information, and the insurance company and the Insurance Development Institute check the number of records and the amount of money, etc., compiled in the annexed information. Item search is to check whether there is any inappropriate information in each compilation item of the basic statistics, and to confirm the information error by comparison between related items. Distribution search is to check whether there is any abnormality by comparing the actual performance of the object information with the past actual performance.
3. Requirements for compilation of statistical information. The requirements for compilation of statistical information consist of four parts. The first is a record of the method of submitting records, the unit of record, and other ****same instructions. Second, the format consists of record management items such as the insurance certificate number, the accounting processing date, the risk characteristics of the contract involved, premiums, insurance premiums, and other items. Third, a detailed description of the method of compiling each item of the format. Fourth, the codes used to organize and compile the records.
4. Utilization of statistical information. Using the collected insurance statistics, the Development Institute compiles experience life tables and experience hospitalization rates, and calculates insurance premium rates (risk rates). In accordance with the three categories of contract statistics, payment statistics, and claim rate statistics, the IDA compiles and provides statistical information categorized by insurance year, commodity type, contract item, age, occupation, and region. For motor vehicle insurance, workers' compensation insurance, etc., we provide insurance companies with information on the characteristics of each contract. Publishing and distributing monthly and annual insurance statistics reports, yearbooks, collections of statistics by type of insurance, and other non-periodic analytical statistics. Establishment and operation of the Insurance Accident Information System and the Motor Vehicle History Information System. From the Modern Marine Fire Insurance Company, we understand that insurance companies can obtain and utilize the statistical information from the Development Institute for the analysis of company operations, adjustment of insurance premiums, and evaluation of the results of historical data.
II. The Role of Statistics in the Development of the Insurance Industry in Korea
(I) Insurance Statistics as a Foundation for the Development of the Insurance Industry
From the above, we know that insurance statistics play a strong supportive role for the insurance industry in Korea, and are an important pillar for insurance supervision and management. The statistics compiled on the basis of the insurance statistics report are applied to all aspects of the Financial Supervisory Service, Insurance Development Agency, and insurance companies. It is the basis for measuring and evaluating the management status of insurance companies in the industry as a whole and for classifying and evaluating insurance companies and providing early warning, and it is the basis for determining pure insurance rates, formulating the life table of experience, the appropriateness of premiums and liability reserves, and evaluating the object indicators, etc., from a broader viewpoint.
(2) Wide Scope and Content of Insurance Statistics
Korea's insurance statistics are wide-ranging and rich in content. For example, the statistical reports that insurance companies submit to the Insurance Supervisory Bureau of the Financial Supervisory Service on a regular basis not only include statistics on the general operating process, such as business and finance, but also important matters such as changes in shareholders, connected transactions, internal control, questionnaires and financial accidents, as well as various operating procedures. The Financial Supervisory Authority can rely on these statistical reports. The Financial Supervisory Authority can use these statistical reports to create a package of statistical indicators to comprehensively analyze and measure the operating status and various basic conditions of each insurance company. For example, the information on insurance contracts submitted by insurance companies to the Insurance Development Institute is very detailed, including not only basic matters such as company code, time, contract status number, endorsement number, and period of insurance, but also risk characteristics such as structure level, item code, and item category, and even matters such as the amount of the insured amount, the reason for premium discounts or markups, and corrections and changes in premiums, which is a kind of statistical report based on each insurance policy and each insurance incident. It is a statistical information based on each policy and each insurance incident.
(3) Insurance statistics play an important role in strengthening the resources of the insurance industry as a whole and in making the insurance operation more detailed and scientific
The development of modern insurance is largely based on the application of the law of large numbers and other principles, and the use of insurance statistics to make the resources of the insurance industry more available to each company and to establish a data base of the whole society on the loss rate and the compensation rate so as to make it possible for different groups of people or different types of insurance companies to make their insurance policies and insurance policies more accurate. This will enable the insurance industry to provide different rates for different groups of people or different insurance subjects, which is conducive to the scientific and sound operation of the insurance industry as a whole. Korea's Insurance Development Institute plays a unique role in this regard.
1. Calculation and verification of insurance rates. Using information about insurance contracts submitted by each insurance company, the KIDA prepares experience life tables and experience hospitalization rates for the life insurance industry, mainly for the occurrence rate of accidents that are the subject of life insurance and medical insurance, for use by life insurance companies in determining insurance rates, and the experience life tables are generally prepared once every three years. In the property insurance industry, the main purpose is to summarize and calculate the loss rates of various social risks and use them as the basis for calculating the insurance premium rates for the whole industry.
2. Establishment of an industry database of underwriting and claims information. The Insurance Development Institute compiles and provides statistical information categorized by insurance year, commodity type, contract item, age and occupation of the insured, and regional distribution according to the three major categories of insurance contract statistics, payment statistics, and claim rate statistics, and provides the contents of these risk factor databases to each insurance company for reference and use. Through the regular and institutionalized exchange of information among insurance companies, it helps to determine compensation for actual losses, and the exchange of information helps to prevent and protect against insurance fraud.
3. Establishment of rate classes reflecting structural differential rates. The Insurance Development Institute (IDI) also establishes different rate tiers for the specific circumstances of individual parties. For example, the IDI is to provide insurance companies with the converging characteristics of each insurance contract for the main types of insurance, such as motor vehicle insurance and workers' compensation insurance.
(IV) Insurance statistics play a unique role in reflecting the function of social management
Automobiles are one of the important basic means of transportation in modern society, and the automobile industry occupies a very important position in the economic and social development of the country as a whole, and is very closely connected with modern enterprises and human beings, coupled with the mandatory nature of automobile insurance, so that motor vehicle insurance statistics are important for promoting the automobile industry The motor insurance statistics play a very important role in promoting the healthy development of the automobile industry and protecting the interests of the insured. For example, the Korea Insurance Development Institute (KIDI) started its statistics on insurance contracts from motor vehicles in July 1985 at the earliest. The KIDA connects the automobile industry authorities such as the Ministry of Construction and Transportation of 256 cities, counties, and districts nationwide through the Motor Vehicle Compulsory Insurance Insurance Management Computing Network to notify them of the names of uninsured automobiles and to share information on traffic law violators with the Transportation Department. In addition, the Insurance Development Institute actively supports social welfare activities by constructing and operating the Insurance Accident Information System and the Motor Vehicle History Information System through statistical data.
Three, South Korea's insurance statistics on China's inspiration
(a) continue to strengthen insurance statistics
In recent years, China's insurance statistics have achieved significant results, in the construction of the system, the construction of standards, the means of innovation and staffing and other aspects of progress. However, based on the principle of the law of large numbers, the development of the modern insurance industry, its statistical work compared with other industries, the importance of more prominent and urgent. Whether it is to strengthen the supervision of insurance solvency, to prevent and resolve insurance risks, or to set insurance premium rates in a scientific and reasonable manner, and to actively develop new insurance products to expand insurance coverage, the support and protection of insurance statistics are indispensable. Therefore, we should continue to emphasize and strengthen the insurance statistics work of the regulatory bodies, and at the same time, we should also strengthen the guidance to the insurance companies, actively urge them to effectively strengthen the insurance statistics and other basic work, and prioritize the promotion of insurance statistics work in the aspects of institutional setup, staffing and funding arrangements.
(2) Further Strengthening the Construction of Statistical Laws and Regulations
Korea's scientific and rich 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 us in expanding and innovating our statistical work. Therefore, it is recommended to combine the favorable opportunity of the revision of China's insurance law to further clarify the responsibilities and requirements related to insurance statistics, so as to provide legal protection for the smooth development of insurance statistics.
(C) Improve the content of insurance statistics as soon as possible
Since the development and use of the insurance statistics information system, a lot of work has been done in collecting, summarizing and organizing and analyzing the financial and business data of insurance companies, especially in the centralized management of the data and the use of efficient querying and other aspects of a historic breakthrough. However, compared with the extensive content and rich content of Korea's insurance statistics, our insurance statistics still have many problems, such as insufficient data, incomplete content and fragmentation, etc. Therefore, it is recommended that we learn from Korea's advanced practices of insurance statistics, especially Korea's advanced practices of exhaustive statistics on the content of insurance contracts and information on each payout, and supplement and improve the content and scope of insurance statistics as soon as possible, in accordance with the principles of keeping to the strengths of the people and advancing in an orderly and gradual manner, so as to do a good job of collecting and analyzing financial and business data of insurance companies. In accordance with the principle of "making the best use of one's ability and taking a step-by-step approach", we should supplement and improve the content and scope of insurance statistics as soon as possible, and do a good job in compiling all-around and multi-angle statistics on information on insurance contracts, information on insurance organizations, and records of insurance practitioners, so as to provide detailed and comprehensive data for the establishment of dynamic regulatory measures.
(IV) Innovative Means of Insurance Statistics
Statistical work is closely related to IT informationization construction, and modern IT information technology is an important means to do a good job in insurance statistics. China's insurance industry, the amount of statistical data information and workload is far greater than the Korea Insurance Development Institute, therefore, it is imperative to further improve China's insurance statistical information system on the basis of borrowing and absorbing the experience of foreign advanced technology. At the same time, the insurance company puts forward the statistical information collection, transmission, management and other aspects of the rr technology requirements, through the use of advanced "pedestal" technical means to promote the insurance statistical work to achieve greater development.
(E) strengthen the centralized management of insurance statistics
From the viewpoint of the actual development of China's insurance industry in recent years, the insurance industry has initially accumulated a number of industry data, but the insurance regulator in leading and assisting insurance companies to accumulate the entire industry's public **** data is not enough, especially in the centralized and unified management of the insurance industry's relevant data and information still exists. Some problems. From the way of managing insurance statistics in Korea, the regulator centralizes and unifies the collection of relevant insurance statistics and enjoys the use of them within the organization system*** Therefore, it is suggested that the CIRC further clarifies the unification and centralization of China's insurance statistics, avoids the multiple management of statistical data and statistical analysis information, strengthens the consistency of the data and the basis of the analysis, and achieves the unification and standardization of the data and information in terms of the development of the business, solvency assessment, risk management and policy research, etc. to realize the unification and consistency of insurance industry data resources and information resources **** enjoyment, and to effectively reduce the workload of each insurance company to repeatedly report data to the regulator many times.
(F) Strengthening the enforcement and inspection of insurance statistics
The authenticity, consistency and completeness of data are the basis and prerequisite for the good work of formulating insurance industry policies. As seen in Korea's study, the design and pricing of insurance products, assessment of solvency, withdrawal of insurance reserves, reinsurance arrangements and asset-liability management require the accumulation of many years of historical data on underwriting and claims. These data need to be accumulated for at least about five years before the corresponding effect is realized, and the accuracy, timeliness and completeness of the data are very important. The Korea Insurance Regulatory Commission (KIRC), in accordance with the provisions of the Insurance Act, often checks and verifies the statistical data reported by the companies, mainly by checking the data with the previous historical data of the companies, comparing the data with the corresponding data of other companies and conducting on-site inspections on the insurance companies to ensure the truthfulness and accuracy of the data, as well as penalizing the insurance companies that have problems and holding the executives of the companies accountable, which is very useful for us to strengthen the enforcement inspection of insurance statistics and implement the corresponding enforcement measures. This is a very important reference for us to strengthen the law enforcement inspection of insurance statistics and implement the corresponding administrative penalties.
(VII) Do a good job of insurance data standardization
To do a good job of data collection, data management, decision-making support and analysis and research in insurance statistics, it is necessary to first solve the problem of insurance data standardization. At present, China's insurance companies are independent of each other, the system is very different, the statistical caliber is not consistent, the use of databases are not the same, the most fundamental reason for these problems is that the statistical data standards are imperfect or even missing, so we should seize the insurance standardization of the construction of a favorable opportunity to use the principle of "urgency first," first of all spend a lot of effort to focus on solving the insurance basic data standardization. Therefore, we should seize the favorable opportunity of insurance standardization construction and adopt the principle of "urgent use first", and first spend a lot of efforts to solve the main problems of the lack of insurance basic data standards and data interface standards.
(8) Accelerate the construction of statistical organization and statistical team
Insurance statistics is a very strong business and comprehensive work, and the quality of cadres is also very high. China's insurance regulatory agencies, whether from the personnel, or from the overall quality of the team are not adapted to the statistical requirements, therefore, it is recommended to speed up the construction of statistical organizations, increase the number of statisticians, improve the overall quality of the statistical team, to adapt to the needs of the larger and stronger insurance industry.
Author: Pei Guang, China Insurance Regulatory Commission, China Insurance Regulatory Commission, Ningxia Supervision Bureau, Guo Xueyan, Liu Lei, Sichuan University, School of Economics, Wei Peiyuan
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