An Analysis on the Need of the Insured Durchgriffin the Life Insurance Company

The paper analyzes the asymmetry between the rate of return and the risk of shareholders caused by the system of limited liability in Life Insurance Company and a series of problems to the insurance market thereafter. It is suggested that the setup of insured durchgriff system in the life insurance company could be an effective approach to solve the problems. Meanwhile, relative problems in the management of life insurance derived from the asymmetry could be solved to some extent.