Research On The Risk Management Of Insurance Companies Under The Second Generation Of Compensation

With the rapid development of China's economy and becoming the world's second largest insurance market,the existing China solvency I regulatory system has been unable to adapt to the development demand of the insurance industry,and also fall behind comparing to other major insurance markets in the world in terms of the insurance solvency supervision.In 2016,the C-ROSS was officially implemented,which had a profound impact on the risk management of Chinese life insurance companies.This article will introduce and analyze the development of China's historical solvency regulation,the next phase improvement of C-ROSS,the comparison between the C-ROSS and other international solvency supervision methods,the impact of C-ROSS,and the capital and return optimization under C-ROSS,risk management and practice under C-ROSS,and insolvency management under C-ROSS.The study found that under the C-ROSS,life insurance companies put very high requirements on asset-side risk management.The focus is on managing asset allocation,reducing capital requirements,effectively managing interest rates and market risks,and fully linking with the liability side to optimize risk-adjusted investment rate of return.The risk management of the liability side is to fully optimize the relationship between profit,capital and growth,focusing on optimizing and adjusting the product mix to achieve an optimized product guarantee level which can not only ensure the growth of corporate income,but also balance investment capabilities and risks,pursue optimization of asset allocation and quality,and improve shareholders' capital efficiency.In enterprise risk management,we should strengthen and improve the risk management framework and governance structure,comprehensively improve risk management capabilities,and build strong risk management capabilities to achieve more efficient capital utilization.Under the C-ROSS's risk management,risk management is completely different from the existing solvency I,which greatly improves the standards and requirements in terms of governance structure,risk appetite,risk limits,risk processes,internal control,own risk and solvency assessment.In addition,the impact of the implementation of the C-ROSS on insurance companies of different sizes is also very different,so the operation of insurance companies is more differentiated.This difference in operation is reflected in marketing capabilities,product development capabilities,capital management capabilities,and investment capabilities,as well as liquidity management,asset and liability management.In particular,it is necessary to establish comprehensive risk management framework,systems and processes.The study also found that the implementation of C-ROSS is not an isolated insurance company's solvency adequacy management.This article also analyzes some of the areas in the C-ROSS implementation process that need to continue to improve,andhow to further improve the effectiveness of solvency management by better linking with China's accounting standards.