The Study On The Dynamic Financial Analysis Of Insurance Solvency

Insurance is an industry that deals with risk. The safety and stability of insurance business impacts the benefit of the public and the development of macro economics directly. During the last ten years, the insurance industry in China has achieved a big development, but the problem of insolvency appeared at the same time. Thus, it is important and valuable to make a study on the risk management of insolvency in insurance. This thesis analyzes the risk factors that influence the solvency ability of insurance companies, reviews the popular instruments of solvency management and makes a methodological study on the Dynamic Financial Analysis method which is a new instrument for insurance risk management. At the final part, the thesis also tries to employ DFA to the insolvency risk management of insurance companies and the insolvency supervision of insurance industry.The thesis covers six parts:Part one is an introduction. It presents the significance of the study.Part two analyzes the definition and contents of insurance solvency, finds out the general factors affecting the insurance solvency and the special factors affecting the insurance insolvency in our country.Part three makes a summary for the popular solvency management methods, analyzes the situations and existing problems of insurance supervision in our country.Part four studies the Dynamic Financial Analysis models. This part makes a brief history review of the origin and development of DFA ideas, analyzes the contents and structure of DFA models, discusses the popular DFA stochastically variable models, and introduces the DFA software, Dynamo3.0.Part five researches into the application of DFA to the insolvency risk management of insurance. From the aspects of both insurance company and supervise department, expounds in details the application and the value of DFA in insurance insolvency risk management, makes a demonstration on DFA, and discusses some other problems that we must pay attention to when applying the DFA to the insurance solvency analysis.Part six draws a conclusion and puts forward the issues needed to study further.