A Study On The Risks Of China's Life Insurance Operation

The problem of insolvency in the insurance industry is well recognized. This study investigates operational risks of China' s life insurance industry and aims to study the possible financial crisis in China from a new perspective.On the basis of literature review, we first identify the main risks in the China' s life insurance industry. The mange risks of life insurance are divided three types: the first type is the risk of environment including the risk of period of operating cycle, the risk of market competition , the policy risk and catastrophic risk; the second type is operational risk, including decision risk, location risk of branch of insurance and so on. The third type is man-made risk, including the morals risk , psychological risk and so on. Further, this study analysis the causer for the risks of life insurance operation from three aspects: the institute of insurance, the capital application and change of the interest rate.Now, there are two insurance regulation systems: European Community system and American system. Their insurance solvency is discussed as the basis of insurance management, but thy have each important inspect. The solvency regulation is the nucleus of insurance regulation. The European Community insurance regulation system and the American insurance regulation reflect the main idea of insurance regulation of each country in the world.We can found new solvency regulation system in our country from using their experience. This paper formulates our country' s forewarn insurance regulation index system from evaluating the two insurance regulation system and jointing the practice of insurance regulation in our country This index system made of property quality index, profit index, management steadily index and vocational work index. This paper illustrate the change of solvency of life insurance operation with the date of China' s main life insurance company and adopts factor analysis.On the basis of the above contents and conclusions, this study points out some macro policy selections, thus, providing reference idea for policy departments...