Currently, Life Insurance Company has developed rapidly in China. Premium income was extended year by year and bigger than property insurance company. It seems a life insurance company will have a bright future. However, there still had some conflict and hidden trouble in the development process, such as customer service quality was not satisfied, response time was long, competition was fierce, operation cost was high, malpractice issue exist etc.

Align with the rapid development of the Chinese insurance industry, the competition in the insurance market is becoming more and more fierce. It is the common view in the industry that the risk and crisis management ability had become the key competitive force of the insurance company. Nowadays, operational risk event occurred, so that the insurance company had realized that the operational risk is becoming the main risk which restricted the company to develop, even will influence the live or dead of the company. So how to enhance operational risk measures, increase insurance company’s ability to defense operational risk, Especially the 2013 Fanxin incident break, sounded the alarm for the life insurance business be on the upgrade, This requires us to study how to maintain its development achievements, enhance the operational risk management awareness of insurance business. Build operational risk management framework which is suitable for business volume and company strategy, try our best to avoid the occurrence of systemic risk, reduce the probability of operational risk for a life insurance company. Strengthen the business risk consciousness of a life insurance company, will be conducive to the long-term life insurance business, keep a healthy and sustainable development pace.

This study first introduces the concept, character and current situation of domestic life insurance business, the use China's life insurance market present problems as a starting point, select the H life insurance company as the object of study. Through in-depth analysis of the operational risk management deficiencies in H life insurance Company, combined with the Basel protocol, the overall risk management framework theory, advised the best practice in the industry, gives specific suggestions and practical solutions. This study first introduced the definition of the Basel protocol for operational risk, then introduced the development process of the academic theory of risk management and the COSO overall risk management framework theory, Based on these theories, we carried on a in-depth analysis of the operational risk management framework for H life-insurance company, we find some problems existed and the biggest problem is the operational risk management framework of H life insurance company is not perfect, so we had tried to proposed a solution to refine the e operational risk management framework of H life insurance company. The proposed measures include: qualitative and quantified analysis operational risk, evaluation of control points, establishment of operational risk key indicators and setting loss database. Finally combining with the actual situation of H insurance company, proposed the following measures: improve the operational risk management structure, conduct the self-risk assessment process, selection of key risk indicators, set up operational risk loss database and build operational risk management culture. The research results in this paper have some practical value and maneuverability of operational risk management for H life insurance Company, because these problems are common in the insurance industry. It also has certain reference value for the other insurance company.

This study is divided into six parts: the first chapter introduced the background of the study, the study's purpose, significance, research ideas and research methods; Chapter 2 describes the theoretical basis of this study; chapters 3 introduced the general status and operational risk management deficiencies in H life insurance company; Chapter 4 introduced the best practice to implement operational risk management framework for life insurance company; Chapter 5 combined with the current situation in H life insurance company, advised the detailed roadmap for H insurance company to implement a appropriate operational risk management framework, with this framework, H insurance company could realize sustainable and healthy growth; Chapter 6 summarized the conclusions of the study and also proposed the future study expectation.

Key words：life insurance, operational risk management, Basel committee，internal control