Allocation of Insurance Supervision Resources:Economic Effect and Inspiration Direction

It is as a means of emendator for the failure of the insurance market that insurance supervision exists.Insurance supervision holds a core position in the transaction chain of China's insurance market.The ultimate direction of the target of insurance supervision is to protect the consumers' right and interest,the realization of this target is determined by the allocation efficiency of insurance supervision resources and the inspiration direction of insurance supervision.The model of official utility maximization can be used to analyze the economic effects of allocation of insurance supervision resources.Under the conditions of protecting the consumers' rights and interests as the direction for supervision,reforms should be made upon the strengths and methods of insurance supervision,so as to adjust the direction of insurance supervision inspiration and keep within limits the impulse for premium and the impulse for scale in the whole trade.