The Research On Supervision Of Insurance Solvency

Systematic study and practice of insurance solvency supervision in developed countries commenced in 1980's. Based on the respective historical development of its insurance industry, an insurance supervision system which is basically suitable for its economic characteristic has gradually come into being. While China lags a little in supervision of insurance solvency, with both theoretical study and practical lagging behind developed countries. China's current supervision system of insurance solvency has several bugs and leaks. For example, our supervision of insurance solvency is still a static one, lacking of combination with dynamic regulation. The regulation on management of insurance fund is too rigid, which causes less space for insurance companies to manage their fund. Capital risk in the calculation of solvency hasn't been concretely represented. Supervision instruments and technologies lag behind, and regulatory index has certain time lag. A set of regulatory instruments and precautious system is out of place. We haven't constituted a set of accounting principles which fits for both international custom and Chinese supervision requirements. By referring to successful experience of supervision of insurance company's solvency in developed countries such as the United States, Great Britain, Japan and South Korea, this paper puts forward some constructive suggestion to perfect supervision system of insurance company's solvency capability in our country.