The Analysis Of Financial Risk Of PA Insurance Company

It's already about 2 years after China joined in the WTO, Now is the time for the Chinese government to carry out her promises-to open up her financial industry thoroughly. Facing the enormous insurance market in China, most of the global insurance companies in the world have the wish to enter the Chinese market. Simultaneously. Chinese-investment insurance companies inevitably fell in the competition with foreign-invested ones. Under such macro-economic environment, Chinese-leaders of insurance companies have to think of the best ways to survive the competition develop.The article makes analysis form the perspective to financial risks to research into PA Company. It is expected that through this article, the readers could have a better understanding of the risks of insurance enterprisers, so that they can control and prevent these risks and maintain a healthy, stable and rapid development for the insurance companies. The article consists of 7 parts.Part 1. A brief introduction of Chinese insurance services and PA insurance company.Part 2. A summarization of risk-and financial risk related theories. Including the concept, classification, characteristics and measurement of etc.Part 3. The analysis of a series of bankrupt cases of Japanese insurance companies. Some conclusions are drawn on major risks the insurance enterprises arefaced with in their production, operation and financial management, Indicating the necessity to strengthen analysis and research on financial risks for the insurance enterprises.Part 4. This part mainly analyzes currently available funding channels for PA Company, as well as the manifestations of the risks for these various funding channels, and proposed a series of risk-prevention measures during the funding process.Part 5. The analysis of PA Company's investment risks. This part first explains the necessity for insurance companies to make investment and insurance investment principles. Then it analyzes PA Company's problems in the allocation of insurance capital. After that, recommendations are made for insurance investment risk prevention in the following aspects: capital allocation system, sound investment proportion, internal control system and personnel training.Part 6. The risk analysis for premium payment and cancellation or termination of contracts.Part 7. Pre-waming and risk-prevention for insurance enterprises.This article provides some guidance for insurance enterprises to raise awareness of risks, and improves the ability to properly recognize and prevent risks in the process of actual operation. I first studied extensively the research done by academics from home and abroad on risks and financial risks. Then I defined in his article risks and financial risks from an economic point of view. I have also expanded the range of financial risks according to the characteristics of the insurance industry. Meanwhile, I have also collected large amount of data and material about insurance and PA Company, and have focused on risks involved in funding, investment, and premium payment to carry out detailed analysis. I have stressed that insurance investment is the lifeline of modern insurance enterprises, and have probed into the influence of investment risks from the aspects of macro-policies, rules and laws, China's current financial market, and PA Company's own conditions. Regarding premium payment, three layers of protection are recommended for the management and control of premium payment to be collected according to thecharacteristics of insurance industry. I have introduced western financial risk prevention model to analyze actual cases from PA Company, and demonstrated its weaknesses. Taking PA Company as an example, and integrating the actual condition of the company's operational agencies, I have constructed a whole system of internal monitoring indicators, which provides pre-waming for financial risks, and therefore achieves the final goal of reducing the financial risks for the insurances enterprises.