ABSTRACT
It is necessary for the government to intervene in the insurance market, keep the market in order through regulatory means, and thus promote its healthy, efficient, and fair development. The principle of operating according to law requires that an insurance regulatory body must supervise and administer the insurance industry in accordance with law, and must carry out administrative functions according to legally stipulated objectives, measures, procedures, and conditions. Protecting the rights and interests of consumers is the whole premise of and foundation for the survival and development of the insurance industry. Strict regulatory supervision of the health insurance market is therefore necessary, including controls over such aspects as operations and management, insurance products, sales behavior, and actuarial reports. In detailed fashion, these reports will cover the basis, method, and results of the calculation of reserves, as well as how the capacity to pay compensation (solvency) influences the company.
