The Analysis And Research Of The Elements Influencing The Solvency Of Non-life Insurance Companies In China

With the setting-up and improving constantly of the socialist market economy system in China, both of finance and insurance are becoming important motive forces of economic development of our country progressively. At the same time,the risk is increasing constantly on the other hand. From the viewpoint of the market of non-life insurance, all of problems are to be solved in insurance's evolution in China, such as how to analyze and appraise the risk of the solvency of the non-life insurance company, how to increase the solvency of the non-life insurance company and how to improve the efficiency of the supervision of solvency risks and so on. This is the meaning of the topic proposed in the text that the research on the solvency of non-life insurance companies in China.Among the relevant literatures of insurance economics, solvency is a basic word not defined clearly. A definition that is relatively accepted is that it is some financial solvency which is used by the insurance company for bearing all due debts and responsibility in the future. As to non-life insurance companies,solvency is the compensation ability it possesses to undertake risks. It reflects a kind of relation between assets and debts of the insurance company. This text regards data of six Chinese-funded non-life insurance companies as the samples of analyzing, such as PICC Property and Casualty Company Limited. Through carrying on gray related analysis to internal and external factors influencing the solvency of non-life insurance companies (including the absolutely gray related degree, the relatively gray related degree and the comprehensive gray degree), the text carries on quantization to the degrees of the influences between solvency and all factors and the degrees of the influences between each factor in order to make readers have ocular understanding to degrees of their influences. And seeing that the unique status of PICC Property and Casualty Company Limited on Chinese market,this text has regarded its data of 2001-2003 as samples and carried on single analysis again. At the same time, through arranging in an order all kinds of gray related, the text explains different status of eachinternal and external factors influencing the solvency of non-life insurance companies from three of the absolute angle, the relative angle and comprehensive angle. Finally, on the basis of quantitative analysis,it proposes the measures that improve the solvency state of non-life insurance enterprises at present and put forward the suggestions to the supervisor that how to improve the efficiency of the supervision of solvency.