A Study On Solvency Regulation Of Insurance Companies

Mainly using theoretical approaches, this paper studies the solvency regulation of insurance companies systematically and comprehensively by comparing so many kinds of advanced methods of solvency regulation.Firstly, this paper examines the strategic position of insurance industry in national economy of a country. The author points out that, as an important branch of finance, insurance plays an unsubstituted role in protecting people's life and property. Especially life insurance industry has a strong externality to economic stability anddevelopment. While, without the regulation on the insurance market--insurancecompanies, there is no stable and persistent development of insurance industry. So, as the core of insurance regulation, solvency regulation is important and necessary. That's the importance and significance of this paper.In the second part, the basic concepts of solvency are introduced and what are those factors that lead to worldwide solvency crisis are analyzed. At the same time, the paper illustrates the objects of solvency regulation detailedly, and gives a simple retrospection of the history of solvency regulation.The third part gives a detailed introduction of the existing models of solvency regulation, and points out that every country should choose the proper model according to the situation of itself.The fourth part studies the ways and methods of solvency regulation systematically and comprehensively, including regulation monitoring, static regulation and dynamic regulation, insurance guaranty fund. Among which regulation monitoring would give some prospective information about the solvency of an insurance company; static and dynamic regulation are the main methods ofsolvency regulation, and the guaranty fund is the final safeguard to the insureds of those insurance companies which have no solvency.The fifth part places special emphasis on the shortages of China's solvency regulation by analyzing the development and current situation of it and comparing it to the developed solvency regulation experiences of typical developed countries. Consequently, the author suggests some policies and advices on how to perfect the solvency regulation of China's insurance companies.The importance and significance of this paper is to arouse the attention on the importance of solvency regulation from the insurance regulation department and insurance companies, thereby, the solvency regulation would be strengthened; and to suggest some policies and advices on how to perfect the solvency regulation of China's insurance companies to promote the stable development of China's insurance industry.