【正文】 in insurance industry, and also make a new and higher requirement for insurance products and service. Entering the World Trade Organization put new vigor into driving the development in insurance industry of ChinaEntering the World Trade Organization was a significance in the history of the process to China’s reform and openingup, an important chance to further open up with allround, more degrees and wide field, which indicated that China’s openingup had entered into a new historical stage. It will bring a farreaching influence to the reform and the development in insurance industry. There will be great changes in insurance market: Firstly, the operative main bodies in market greatly increase. The business scope and business areas will be gradually expanded and the petition will be more intensive. Secondly, the petitive pressure will promote the Chinese panies to deeply reform the system, transferring the operative mechanism and strengthening the enterprise’s petence. Thirdly, with the help of foreign operative concepts and managing experiences, it will be helpful for the insurance industry of China to change the growing way, promote the insurance panies to enhance the levels of operation and management and speed up the innovation of product technology and service and constantly increase the petence. Fourthly, it will make China Insurance Regulatory Commission improve and strengthen the insurance supervision, change the supervisory way, improve supervisory means, increase supervisory efficiency and quicken the steps mixing with the international munity. The improvement in market environment will be helpful for the standardized development in insurance industry of ChinaThe great adjustment and standardization in insurance market order was a necessary choice for entering the World Trade Organization and expanding the openingup and an important step for improving the legal system of market economy. In 2001, there were activities for adjusting and standardizing the order of market economy in the whole country, which achieved the result in the stage. In accord with the arrangement in the Central Economic Conference, in 2002, there will be further an adjustment and standardization for the order of market economy, which will be required to hold widely, value the importance, cure the inside and the outside and specially the inside. It is emphasized to deeply adjust the order in finance, strictly deal with the activities breach of laws and rules of the financial institutions in bank, security and insurance. Attacking the financial fraud is the key work of adjustment and standardization this year. It is expected to build up an atmosphere in the society with mercial moral, integrity and fair petition. In addition, the modification of 《Insurance Law》has been put into the national plan and a series of administrative law and sector’s regulations will be put into effect. All these will be helpful for insurance industry to develop in a legal and standardized way. The event of played a warning part in China’s insurance operation and supervisionThe losses arising from the event of brought a huge heartquake and attack to the globe insurance industry and retained the deep enlightenment for us to think: firstly, it is needed to think over the way of underwriting in traditional insurances. What was not expected in the past is possible to happen at present anytime. Only by constantly strengthening risk awareness and improving operative way and holding allround service can insurance industry meet the new change. Secondly, it is necessary to understand the importance of risk spread and prevent the accumulation of risks. Thirdly, it is more valued to regulate solvency and reinsurance. The event of accelerated the change in the pattern of interest distribution of insurance industry. The biggest loss of the event itself was reinsurance, but from the long run, the biggest winner will be reinsurance. During the period after that, there will be a bright prospect in reinsurance operation and there will more gain chances. Fourthly, it is essential to research and establish the mechanism against the catastrophe of China. Carefully absorbing these experience and lessons will be helpful for the insurance industry of China to stably operate and prudently supervise. Summing up the above, there are many advantages for the insurance industry of China. We are confident about the further healthy development in China insurance market. Meanwhile, we must see the disadvantages: a general slow growth in the globe economy, the world trade greatly slowed down, a large amount of direct international investment reduced, a difficulty in the export of China, the pressure of employment increased, there was a big problem between the contradiction of industry structure and the deep degree of economic system, the problems of market disorder did not really change, the reform of stateowned enterprises was very hard, the resident’s ine grew slow etc., all these will have an influence on the development of China’s insurance industry.3. The Answering Measures to the New Situation Deepening the systematic reform The reform for the stock system of stateowned insurance panies. The first is to bine the situation of the pany and in time work out the program of the reform for ratification。 The second is to clean up the bottom of the pany, widely clean up and check the asset and reasonably determine the value of the stateowned asset, invite the authoritative and recognized intermediary institution to evaluate the asset and thoroughly make sure the asset and the liability。 The third is to introduce foreign capital and the social joint capital。 The fourth is the make efforts to the transfer of operative mechanism. Realizing the stock system is not an end and the key is to establish the modern enterprise system, improve the system of management with artificial person and really transfer the operative mechanism. Only when the