Empowerment of the Third Party' s Direct Right of Claim and the Risk Management of liability Insurance

The new Insurance Law makes clear that the third party of liability insurance owns direct right of claim to the underwriter.As it is limited by China insurance industry development status and legal popularity,the giving of third party's direct right of claim will add new disputes in insurance practice and bring unknown management risks to insurance companies.To ensure the stable operation of insurance companies,it is necessary to strengthen the litigation risk prevention,expand coverage of compulsory liability insurance and enhance communication with news media and public so as to guanantee the insurer's interest and establish institutional basis for the stable operation of liability insurance.