Based On Solvency Risk Management's Internal Control Research Of Chinese Life Assurance Companies

In 2006, with the State Council's No. 23 document promulgated, the commercial insurance's social management function is recognized by office for the first time. At the same time, Chinese population is at the stage of ageing and the trend of small families deepens continually. On the other hand, the lack of financial resources determines the development of the life insurance industry is our government's strategic choice. Against such a backdrop, the life insurance Companies is facing an unprecedented development opportunity. However, the life insurance companies that deal with risks are always facing more complex risks than any other industries, such as the solvency risk, investment risk, interest rate risk and so on. How to strengthen the Chinese life insurance companies'internal controls that based on risk management, as well as improve their solvency, should be researched more deeply.In the very beginning of this paper, it introduces the background of the subject. Then it makes a literature review for the internal control framework, the life insurance companies'internal controls, the solvency supervision, and relevant industry standards. And then, it introduces the main kinds of risks and discusses the relationship between risk management and internal control. After that, the paper discusses the solvency-related internal control theory and practical application skills with the ERM framework. In the matter of risk identification and risk assessment, the paper says to combine them as a synchronous process by establishing early warning indicators, and puts forward to add the assets'security warning indicators to the traditional one. When talking about the risk response and control activities, the paper advises to set up long-term response method and temporary one. In addition, in order to discuss better, the paper combines the theory to criterion analysis, and take the China Life Insurance Co., Ltd as case analysis. In the conclusions paragraph, the author summarizes the main ideas and points out some weakness in data collection and demonstration research.