U.S. financial insurance group, the development course of the development of the research course of study

U.S. financial insurance group, the development course of the development of the research course of study

Given the differences in financial regulation laws, it is difficult to make universally applicable legal definition on financial insurance group.But as a result of the development trend of financial globalization, the different development law under the background of financial insurance group, will help the insurance industry in our country according to the requirements of domestic law in the process of establishing financial insurance group draw useful experiences and lessons.This paper, taking the non-life insurance market top three financial insurance group, American international group (AIG), state farm insurance company (StateFarmInsuranceCos.) and Allstate insurance company (Allstate) development as the research object, hope to get some beneficial enlightenment.

The United States has the world's largest insurance market and capital market, there is the highest number of insurance company in the world.In the fortune 2008 global top five, selected 46 insurance companies, there are 16 from the United States [1], number of the first in the world.In the financial globalization and financial deals frequent today, America's financial insurance group development path for the world, especially in emerging countries development path choice of financial insurance group has a significant impact and significance

U.S. insurance comprehensive management in the history of the evolution of the rule of law in the United States, there are two federal law defines the framework of the insurance industry, which is the glass-steagall act (Glass - steagallBankingAct, 1933) and "McClernon - falk's law (McCarran - FergusonAct, 1945).The former determines the financial separated operation system, while the latter is the foundation of insurance law.McKellen - falk's act of intent is to increase competition in the insurance industry, the consumers have more options, so the insurance company that the law is not allowed to set up the federal register, in order to avoid and state registered in unfair competition between insurance companies.At the same time, the law of insurance business by state regulations, related to the insurance law of the legislative power in the states, rather than the hand.In spite of the joint meeting of the national insurance commissioner (NAIC decides) such organizations, but their responsibilities is integrated the opinions of the state of insurance supervision, making model regulations, to ensure that the state insurance law and insurance regulation to a certain degree of uniformity, thus to each insurance company.But just demonstration boilerplate code, does not have legal effectiveness.[2] for insurance regulations of the states, most of the law, the insurance company may engage in the business of property and liability insurance, non-life insurance company may engage in the business of life, but can be engaged in accident and health insurance business.But since the 1960 s, the United States there are more and more of the insurance holding company, engaged in the life insurance company also entered the life insurance by way of set up insurance holding company.The main cause of the problem is: (1) the rise in the rate of inflation has increased the investment in the equity capital, and(2) property and accident insurance profit decline, many property and casualty companies need extra capital;(3) the integration of insurance service thought more and more attention.But under the control of the bank holding company act of 1933, namely the glass -
Steger,

Law, the insurance shall not enter other financial sector, this restriction has been reflected in the insurance legislation of the states.But also has some loose, as revised in 1983 under article 17 of the New York state insurance law, insurance companies can invest in other than the bank or the banking regulation of enterprise business, a subsidiary of China.The rules for the insurance industry opened the door into the financial sector and other business, but for the combination of banking and insurance is still strictly forbidden.Since the early 1980 s, however, some insurance companies are also trying to enter the banking market through some indirect way, the main method is to form a non-bank banking subsidiaries (non - bankbanksubsidiaries).Thanks to the bank holding company law "in 1956 will be defined as" bank "to absorb current deposit and lending business of financial institutions [3], therefore the insurance company can buy a complete commercial bank, and then its deposit and lending business, engaged in other businesses, the bank became a so-called non-bank Banks.Until 1987, the U.S. congress to amend the relevant bank definition, such institutions is restrained.Along with the development of the financial integration, provides integrated insurance services have not only meet the needs of the consumers and the demands of the development of the insurance industry, the financial services modernization act of 1999 (Gramm Leach - B1ileyAct) has made a major revisions to this restriction.The law about first mentioned article 3 of the financial activities of the financial holding company (FinancialHoldingCompany), the word within regulation of financial holding company can be engaged in the financial activity or supporting financial activities and supplementary financial activities of the business, also can buy and hold shares in the company engaged in the business.The financial business including savings and loans, insurance, financial advisory services and securities business.But the law about the application of the "state law" article 4 and regulation: the McKellen - falk's act is still valid, insurance business by state laws, and are subject to supervision by the state insurance regulators.[4] therefore the insurance company direct bank shares or have a bank subsidiary is still banned, only by insurance holding companies to hold shares or establish bank subsidiary, it is the only way to insurance industry to enter the banking industry.But for other financial areas, such as securities, asset management, insurance company can be directly set up or the way of merger and acquisition.

Several American financial insurance group to realize integrated management the development process of the insurance companies and the number of financial insurance group ranks first in the world, this us to occupy the non-life insurance market financial insurance group as an example, the three trace its development course, summarizes its development model.3.1 American international group (AIG), American international group is the largest financial insurance group, its predecessor was founded in Shanghai in 1919 aiu insurance company (AmericanAsiaticUnderwriters, AAU).Founder CorneliusVanderStarr aiu insurance company in 1921, founded the Asian life insurance company (AsiaLifeInsuranceCompany, ALICO).Starr in 1926, was founded in New York for the insurance companies in the United States, named American international assurance company (AmericanInternationalUnderwriters, AIU).In 1939, due to the danger of war approaches, Starr its headquarters moved to New York from Shanghai, aiu insurance company becomes a subsidiary of American international insurance company.After the war, the American international insurance company began its collectivization.To avoid the domestic law in 1948, two members of the group foundation - (AIUO) international overseas insurance companies in the United States and the United States international reinsurance companies (AIRCO) (Bermuda) was registered in foreign countries.After the rapid expansion of 1 in the 1950 s and 60 s of the rapid development of 2.In 1967, the international reinsurance company changed its name to American international group (AIG), started the first step in the establishment of a insurance empire.Before long, ALICO joined AIG.In 1969, AIG demutualisation, becoming a public company.In 1970, the AIU and 1 during this period, all acquired Globe&RutgersInsuranceCompany, InsuranceCompanyoftheStateofPennsylvania, AmericanHomeAssuranceCompany, and established the AmericanInternationalLifeAssuranceCompanyofNewYork.2 during this period, mergers and acquisitions NationalUnionFireInsuranceCompanyofPittsburgh, Pennsylvania, NewHampshireInsuranceCompany

Part of the organization into AIG subsidiary.In 1976, American international group to adopt divisional system management subsidiaries, its business units can be divided into four parts, namely the domestic and foreign general insurance division general insurance agency department, domestic general insurance and life insurance brokerage department department.Since the 1990 s, American international group, through a series of acquisitions, consolidate the position of the first financial insurance group, is one of the biggest two in 1999 to $18.3 billion acquisition of SunAmerica company and in 2001 for $23 billion buying American general insurance company (AmericanGeneralCorporation).As a result of general insurance company in financial markets such as life insurance, retirement savings and consumption field occupies an important position, the acquisition as a direct result of American international group to become one of the two largest insurance group in the life insurance market in the United States, life insurance business is also resulting in American international group occupy a larger share of the business.While maintaining the core business of insurance status, American international group, the same attention to financial services and asset management, as early as in 1987 set up a financial services group (AIG 'sFinancialServicesGroup), began to expand the insurance in the financial sector.In the 1980 s, American international group, bought a medium-sized Uberseebank, Switzerland bank, later renamed the AIG private bank co., LTD. (AIGPrivateBankLtd.).The bank has so far only in Geneva, Hong Kong, Singapore, Shanghai and other places set up branches and Sao Paulo, mainly for high-end individual customers and organizations provide asset management services and investment advisory services.In London in 1994, American international group (AIGCombinedRisksLtd.) set up a joint venture company, the company as an investment bank, engaged in financial, reinsurance and risk management of derivatives business.In 1996, for $100 million in consumer and commercial finance business Pacific credit company (SPCCreditLtd).In 1998, AIG $150 million to get a 7% stake in blackstone group (BlackstoneGroup).Through the above a series of comprehensive acquisition expansion behavior, by the end of 2006, AIG's general insurance business, the non-life insurance business income accounted for 45% of group revenues, group life insurance and retirement insurance services accounted for 43% of total revenue, income accounted for 10% of group revenues, asset management and other financial services accounts for only 2% of group revenues.1 as, so far the world's most valuable insurance group AIG while maintaining its insurance business at the same time, there are limits to the insurance financial sector development

State farm insurance company (StateFarmInsuranceCos.) state farm insurance company was founded in 1922, is the largest one of the management of personal property insurance and accident injury insurance company, so far, is still a mutual insurance company.Its collectivization began in 1929, the state agricultural life insurance company (StateFarmLifeInsuranceCompany) the establishment of the two.Unlike AIG, the subsidiary is not obtained by means of mergers and acquisitions, but rather through establishment of a new way., after the state agriculture life insurance company was founded in 1935 and set up the state agricultural (StateFarmFireInsuranceCompany) fire insurance company, the company in 1951 and state agricultural disaster insurance companies merged to form the state fire and casualty insurance company (StateFarmFireandCasualtyCompany), later became the largest supplier of home insurance.Because of legal restrictions, state farm life insurance companies can't in New York, Wisconsin, and Connecticut engaged in life insurance business.Therefore, in 1961 set up the state agricultural life and accident injury insurance company (StateFarmLifeandAccidentAssuranceCompany).The following year, which guarantees low value property of state farm (StateFarmGeneralInsuranceCompany) general insurance company was founded.In the insurance in the financial sector, in 1972, the state agricultural investment management (StateFarmInvestmentManagementCorp.) was established, the company mainly to state agricultural joint retail mutual funds (StateFarmAssociateandRetailMutualFunds) to provide investment advice.State farm insurance until 1998 to enter the banking industry, set up the state agricultural federal savings bank (StateFarmBank, F.S.B.), different from traditional bank, the bank has no branch, only through telephone, Internet and E-mail provide consumers with the savings, mortgage and car loans, etc.

Unlike AIG, state farm insurance all subsidiaries within the group are state agricultural mutual automobile insurance company, a subsidiary of group architecture is career-driven type financial holding group rather than the pure financial holding group.Compared with AIG, as America's largest non-life insurance company, the state agricultural insurance business of insurance financial field more cautious, keep the professional characteristic of the insurance company.[6] 3.3 Allstate insurance group (AllstateInsuranceGroup) Allstate insurance was founded in 1931, is a Sears, roebuck (Sears, RoebuckandCompany), a wholly owned subsidiary.Before the 1950 s, is a professional insurance company only provide car insurance.Thereafter, Allstate began offering general property insurance, liability insurance, and even life insurance business.But as a result of insurance legal restrictions, decentralized management, in 1957, founded the life insurance company Allstate, which opened the prelude of Allstate collectivization development.Founded in 1960, Allstate utilities (AllstateEnterprisesInc.), in the company's subsidiary, Allstate to engage in auto finance, mortgage banking business and mutual fund management of the insurance business.In 1962, Allstate bought the first national company (NationalFirstCorporation), which formally entered the mortgage banking business, the following year, and bought a PMI mortgage insurance company.While into other businesses, Allstate maintained in overseas and domestic insurance market development.In 1964, Canada and Canada Allstate Allstate insurance company life insurance company was set up, make it become a multinational insurance company.Founded in 1974, the company for compensation (AllstateIndemnityCompany.) to provide consumers with more mobile service for compensation.In 1975, through the form of joint ventures and acquisitions into Japan and the Netherlands insurance market.Division was established in 1978, commercial insurance and Northbrook property and casualty insurance companies, the latter in the Allstate group mainly provide important commercial insurance company.In 1993, sears has sold a 20% stake in Allstate, making it public.At this point, the original holding structure can not meet the requirements of U.S. law, Allstate company (AllstateCorporation), established as Allstate insurance subsidiary of the holding company.In June 1995, sears Allstate sold its own company for all the shares, and make good company to become a fully independent and complete public ownership of the insurance holding company.After the public is complete, the Allstate group ushered in the development opportunity.In 1996 and 1997, the group had a record earnings growth.Founded in 1998, Allstate federal savings bank (AllstateFederalSavingsBank) help with group internal financial affairs.In 1999, acquired CNA personal insurance company (CNAPersonalInsurance) and the American heritage investment company (AmericanHeritageLifeInvestment).In 2000, the good things of life insurance company (AllstateLife) into Allstate financial companies (AllstateFinancial), the name of the change means that the traditional life insurance products has expanded to include savings and investment function of the product.By 2002, Allstate group in the United States has nearly 7000 agents provide consumers with the broad financial products and services are not limited to the insurance industry

U.S. financial insurance group development enlightenment of the above three American insurance group, occupy the top three U.S. non-life insurance market.From which we can see us financial insurance group in the property insurance insurance comprehensive management and expanding into other some Revelations of the financial sector.4.1 implement business management synthesizing 4.4.1 comprehensive insurance and the insurance business activities
U.S. financial insurance group, take the customer as the center, taking the path of financial insurance industry integration, realize the business management integration.In recent years,

As the international financial insurance industry comprehensive operation pattern of the deepening, the financial insurance enterprise from the original on the organization structure to build international, diversified financial insurance group to evolve as the financial insurance product, service, mutual penetration, in a unified brand to customers to provide diversified financial products and services, implementation of insurance products and banking products, asset management, for the comprehensive management into the substantive connotation.4.1.2 non-life insurance and life insurance business management synthesizing non-life insurance group in the United States, much more attention to the development of life insurance business.Such as AIG, was established in is founded at the beginning of life insurance companies, even if the business has not been the dominant business group.AIG in 2001 by acquiring general insurance company the position of the life insurance in the United States.Pay attention to the life insurance business for the non-life insurance group in the United States to realize integrated management laid a good foundation.4.2 to realize the business scope of the financial globalization insurance group to value maximization as the goal, through listing, merger, reorganization or other way of capital operation, realize the business scope of globalization.Insurance industry is the industry management risk, under the action of "law of large Numbers", the pursuit of economies of scale and scope economy is the insurance industry highlight the characteristics of business.Study shows that the developed markets large international insurance companies are mostly enhance financial strength through capital operation, to achieve the optimal allocation of resources, thus maximizing its value goal.International financial insurance group of cross-border investment and merger and acquisition has become its exploit overseas market, the main way of chasing growth and profits.In fact, AIG's history is a history of mergers and acquisitions.At present, the international insurance market is emerging as a hotspot of financial insurance group, mergers and acquisitions.

High degree of specialization of non-life insurance group in the United States, whether or not life insurance subsidiary life insurance subsidiary, specialized level is very high, which on the one hand and to deal with the United States by state regulation of insurance business supervision mode and set up subsidiaries, on the other hand is associated with a series of mergers and acquisitions in the process of group development, is also reflected the United States not to serve the market demand flexibility.For the life insurance, it has been proved that it is only through mergers and acquisitions of large life insurance company, shall be adopted by to the traditional legal system to realize the great development of life insurance, non-life insurance group can be ranked first-class international financial insurance group, which is the difference between AIG and state agriculture and Allstate.4.4 attaches great importance to the asset management business of non-life insurance group in the United States attaches great importance to the asset management business, has its own property management company.This is because, from the history, 1929-1933 in the United States before the crisis, the insurance company is small and the quantity, more external to entrust the investment company assets under management, and lack of transparency in the investment company, insurance company to the investment risk is difficult to control.Due to the accumulation of bubble until the outbreak of the crisis, the U.S. stock market fell sharply sparked panic and a crisis of confidence, in bank credit, investment company assets depreciate significantly and can't make up new money.Crisis, the investment of the company's bankruptcy or insolvency cause insurance companies to invest the assets of the company to fail, even the government bonds of insurance company will not be repaid.Although the insurance industry is famous for its stable operation and safety of the first principle used for money.But due to the investment company's bankruptcy or closure, the insurance company has also been implicated, credit decline of the insurance industry, facing a large amount of loan and solvency crisis.It was also because of the big crisis, make the insurance industry to realize the importance of the risk of capital operation and to prevent the risk of insurance market and capital market integration.Through the 20 century 60, 70
After generation of merger and reorganization, forming a number of large insurance group, these powerful insurance group are acquired or establish their own

Investment company, to control the risk effectively he can grasp the scope.4.5 for the insurance financial sector expansion cautious due to long separated operation, the insurance company to expand to other financial sector are cautious, the proportion of the insurance financial business in group business is still low.For the banking sector, although three insurance group has Banks, but the scale is small, only savings Banks, or even just to the company's internal financial affairs.For other financial sector, although there are a few small scale mergers and acquisitions or strategic investment behavior, but the less influence to the group's overall business.The reason is that the American insurance group into the insurance financial sector, just in order to extend its range of financial services consumers, rather than expanding its capital strength, so there is no need for the passage of a massive mergers and acquisitions to the banking and securities industry development.5. Conclusion after joining the world trade organization, in order to adapt to the trend of the global financial industry development, potential competition and tackling the international financial institutions, domestic financial industry accelerated the pace of financial innovation group.But subject to the conditions of domestic regulation and the limitation of the economic environment, the domestic financial enterprise is only under the condition of management adopted by establishing financial group engaged in the management of integrated services.And the framework of domestic insurance enterprises to realize financial group, on the one hand, to be subject to separate operation in the financial restrictions, on the other hand also under the control of the decentralized management of the insurance limit.In these limitations without may disappear in the short term, the domestic financial insurance group in order to get a better development, we must think globally, positive from the experience of other countries, other enterprises and integrated the actual situation of the country, the enterprise develop suitable for their own path.