【正文】 rding to the pared condition, the realized profits were billion yuan (without the profits and losses in longterm life insurance in China Life Insurance Company), up 310 million yuan. An obvious reinforcement in the function of financial pensation. In the big disaster happening place, the insurance panies could be here in time and surveyed the loss. Over the year, the payments and benefits paid by all the insurance panies were billion yuan, up billion yuan from the previous year. Insurance industry played an important part in stabilizing people’s life, supporting the disaster area and protecting the economic operation. Moreover, it also provided a strong support and risk protection for deepening the reform of stateowned enterprises, improving the social security system and promoting the cooperation of international economy and trade and exploiting the national technical key items. An achievement in the market adjustment In order to carry out the spirit of “The National Conference for Adjusting and Standardizing the Economic Order in Market”, the insurance industry bined the insurance practice and deeply held the activities of adjusting and standardizing the order in insurance market. Over the year, through the three stages of selfcheck and selfcorrection, checking at random and key spot check, summing up and accepting, there was a primary achievement. The main problems and their reasons existing in insurance market were basically clear. The problems focusing on: establishing the accounts out of accounts, privately setting up the small treasury and false claims etc.。 some key problems such as misleading customers in life insurance, putting group insurance and longterm insurance into short, returning premium breach of rules in motor insurance。 punishing 16 insurance institutions with stopping certain business。 canceling the qualifications of the senior managers of 84 branch institutions or suggesting the upper giving administrative punishment。 cleaning up and reducing the unnecessary administrative ratification。 For the problems existing in the business and management of house loan insurance in property insurance, China Insurance Regulatory Commission issued with the People’s Bank of China together 《The Notice about Strengthening the Management in Personal House Loan and Loan Housing Insurance》, corrected the action breach of rules in house loan insurance and in time prevented the operative risks. Effectively controlling the risk of capital application. Based on continuously expanding the channel of capital application, in order to ensure the safety of money and increase the benefits of application, China Insurance Regulatory Commission made a special check on the application of insurance fund last year, discovered 16 panies with problems involving billion yuan of money breach of rules. While the problems breach of rules were handled, some panies were expected to put forward the adjusting measures and to correct them within limited time. Last year, the average return rate of capital application was percent, up percent from the previous year。 The business separating program for Ping An Insurance Company of China Ltd. was under implementation. By the end of the present, the system of business separation of insurance industry in China was basically established. Dividing the business with policy from the mercial business. The first insurance pany with policy in China ______ China Export Credit Insurance Company was established. More strength to supervision Strengthening the construction of insurance legal system. Widely cleaning up 8 pieces of laws and rules and sector’s regulations that did not meet with the WTO rules and the acceptances to the foreign countries, involving 22 clauses. 《The Regulations for Managing Foreign Insurance Companies》was drew out and issued to practice by the State Council. 《The Regulation for Managing Insurance Broker Company》and 58 pieces of some other rules were issued. Meanwhile, a lot of preparation work was done for the modification of 《Insurance Law》. Starting the supervision for solvency. All panies measured their solvency in 1998 to 2000 according to the supervisory index enacted by China Insurance Regulatory Commission. Through the measurement, they primarily knew the situation, which created the condition for different treatment and different supervision. Increasing the supervisory transparency. Understanding the procedure and the method of supervision by enacting the regulations such as 《The Regulation for Operation in Spot Check》, in time notifying the regulations of insurance supervision and the documents for standardization by regularly issuing 《The Proclamation of China Insurance Regulatory Commission》and《The Reference of Insurance Supervision》, notifying the circumstances in insurance market at home and abroad and the supervision, which made the disclosure of information about supervision more strengthened. There had been a framework of the organizational system in insurance supervision. By the end of April 2001, the establishment of the institutions sent by China Insurance Regulatory Commission was finished and 31 offices were founded in the country.In a word, although the insurance industry of China achieved great progress over the last year, there was some existing problems that could not be ignored: the problem of the system in the stateowned panies was still not solved。 there were some serious problems such as making false information and misleading customers and the disorder in market。 the insurance supervision was about to be improved and strengthened etc.2. The Developing Trend of Insurance Market The stable growth in national economy will create conditions for the sustaining, rapid and healthy development in insurance industry.In 2001, when the world economy grew obviously slow, China’s economy still kept a good developing trend with high growth, high quality and low inflation. The prehensive