On Insurance Rate Regulation:Some Points on China's Insurance Rate Regulation Paradox

摘要

The“public interest theory”of insurance rate regulation is in correspondence with the practice of it,that is to say,rate regulation came into shape just for the sake of rectifying the market failure phenomena caused by malignant price competition.However,in the disguise of public interest protection,what rate regulation protects is the insurers'interest instead.Now the problem is that insurers would not like to comply with the regtulation voluntarily,which is in their own interests.Hence the paradox of rate regulation arises.This paper mainly studies the causes of this paradox both in theoretical origin and market structure and then puts forward the solution to the paradox:deregulation of insurance rate step bystep.