英语论文网

ency and alarm. They may attract lots of local professionals with high salary, welfare, further training, etc.. With such an outflow of insurance professionals, quite a lot of domestic business will lose to foreign ventures, too. Everyone knows that the insurance industry depends on people most. The opening of our insurance market must bring about the systematic reform of the state-owned enterprises which need a more flexible management system to hold a stable staff. Inevitably, there are some disadvantages in the human resource management (HRM) in the domestic enterprises which originates from the remains of China’s planned and stereotyped economy. Luckily, the foreign companies’ access to our market can offer domestic enterprises opportunities to learn advanced HRM experiences from their competitors. Anyway, China’s enterprises also have their advantages over foreign companies, such as nation culture awareness, understanding, broad sales network and sales channels. Part Two Opportunities & Challenges 2.1 The Necessity to Open China’s Insurance Market In November, 1999, Sino-US governments reached an agreement on China’s access to WTO. It marks China makes an important advance toward WTO. Now, China has become one of the members of WTO. “Generally speaking, China has performed well since joining the WTO,” says Supachai Panitchpakdi, director-general of the World Trade Organization. [3] (P24) And the overall opening of the insurance market is imminently coming. Is it sensible to fully open the insurance market in China? We think the answer is positive. First of all, it is the demand of our economy development. Our socialistic market economy has been developing fast. It not only invigorates domestic economy, but also stimulates the economy internationalization in China. This undoubtedly expands the insurance market capacity and enhances the insurance quality. Opening the market in China is one of the important factors concerning the reform of our economy system and the establishment of the target market. On the one hand, it can strengthen the integration of domestic market; on the other hand, it helps the insurance market to coordinate with other markets so as to improve the market system into a sounder market economy system. Secondly, it appeals to the developmental demand of domestic insurance business. 1. The opening stimulates domestic insurance products to develop constantly so as to enhance their competitiveness in the market, expand the market further and bring along an overall development of domestic insurance business. Besides, it also introduces advanced management experiences in the international insurance market to improve the management structure of China’s insurance industry. 2. The mathematical basis for insurance management requires large business resources and constant expansion of business scale. An insurance system is able to operate only when losses can be predicted accurately before they occur. When this happens, risk is reduced. The reduction is based on a mathematical principle called the Law of Large Numbers. Simply put, the law states the greater the number of observations of an event based on chance, the more likely the actual result will approximate the expected result. So it requires insurers to collect detailed past loss records as many as possible. Then they can decide the premium rate by calculating the loss rate according to the data they can get. So it is far from enough for insurance b