Author(s)

Xi Zhou

College of Economics, Jinan University, Guangzhou, China.

Social insurance is often plagued by moral risk in the process of implementation. The emergence of moral risk aggravates the contradiction between supply and demand of social insurance fund, raises the cost of enterprise, increases the financial burden of the government, and affects the reputation of the social insurance system. Moral risk is mainly manifested as the misappropriation, illegal operation of social security funds, and social security violations occurring frequently. As the main part of the social security system, the enterprises have the phenomenon of evading the social security fee. What’s more, there is also a moral risk problem in the field of social health insurance. Social integrity based on private relations has been hardly to meet the needs of social development, while social integrity based on mechanism perfection has not been established yet; the Chinese society is experiencing an integrity crisis. Therefore, it is of great theoretical and significance to research and establish a practicable system of social insurance. Based on the present situation in China, this paper analyzes the root of integrity deficiency in China’s social insurance, and puts forward the corresponding policy recommendations and countermeasures.

Social Insurance, Moral Risk, Credit System, Integrity Deficiency

Zhou, X. (2017) The Reasons of Integrity Deficiency of Social Insurance in China. Journal of Service Science and Management, 10, 97-104. doi: 10.4236/jssm.2017.102008.