Research On Solvency Of China's Non-life Insurance Company

Solvency of insurance companies is the available capacity of financial compensation that insurance companies on their liability insurance in the event of a loss beyond the normal times, reflecting a relationship between the insurer's assets and liabilities . It is the overall operations of the insurance function of several variables, depending on a set of parameters such as the pricing of insurance products, investment income, reinsurance arrangements and the extraction of the insurance reserve fund, asset structure, and various external factors. They affect the insurer by assets and liabilities, the ultimate performance for the impact on the solvency.Whether protecting the insurer's interests, maintain social stability, or to resolve to prevent insurance companies from business risks and ensure the healthy development of the insurance industry, the insurance regulatory supervision of insurance companies has become increasingly focused on their pay ability to control. And it has been promulgated and implemented a series of regulatory solvency regulations from 2008, which "solvency regulations" continue to learn from the European Union before the reform of the fixed-ratio method, calculating the minimum solvency of China's insurance companies (ie , the minimum capital requirements)However, it need further testing for the solvency of China's actual situation and the latest development of the method of calculating the minimum solvency and effectiveness of the reasonableness.This article, starting with the various factors that affect the solvency of insurance companies, investigates the status of China's solvency beyond on the calculation of retention premium and compensation expenses, assets, profitability and liquidity, and other indicators.It can be seen that the various factors affect our actual value of the solvency maintain in good condition from a variety of indicators, but some insurance companies also need further improvement. And it can be recognized from the increase of assets, reduce debt and to reduce the statutory minimum authorized capital.In the fourth chapter, it tests the rationality and validity for the method of calculating the minimum solvency for "solvency regulations, ".The difference is that it joined the insurance company investment income factor compared with the previous models, as with the ability to increase the use of insurance funds, investment income and insurance companies has become a major source of income, this could make the calculated minimum solvency more in line with the actual operating conditions of the insurance company.It also use an integrated compensation data in the process of empirical, rather than the net compensation consistent data, so that the "solvency regulations" in the minimum solvency calculated on the basis of statistical standards are consistent, making a more convincing conclusion.Through empirical analysis reached the following conclusions. First, the minimum solvency requirements of China's relatively is low, whether through retention premiums, or through the last three years, the average comprehensive indemnity provision in our calculation of coefficients is low. Second, the calculation of the turning point of design is in an unreasonable, so that the turning point of design for the distinction between big and small insurance companies do not play a role, but also can see a large insurance company paid my rates are not lower than the small and medium sized insurance companies, Therefore, more than a certain amount of the solvency of the lower part of the provisions had not been substantiated. Third, for all types of insurance and companies using the same scale factor, as there is a big gap between the rate of payment, and the same retention is a comprehensive indemnity insurance premiums, or the size of the company will be due to other aspects, such as business management, asset condition and other risks faced by the different conditions are not the same, so it the different insurance and companies should be treated differently.At last, learned from the regulatory model of abroad, and the European Union's latest reform, the improving of our country's solvency regulation is suggested as follows. First, it should be the appropriate laws and regulations to improve the calculation of the minimum solvency coefficient, it can be seen from the above comparison, the minimum solvency of China is low. Through the third chapter of the retention of the status of insurance premium calculations, our retention of certain insurance premiums severe and ultra-regulation with higher risk, and a certain extent that improves the solvency requirements is required to avoid the risk of insolvency ; Second, each company should be a specific risk factors into the regulatory solvency being. Solvency regulation should consider management risk, asset risk and all the risks faced by insurance companies, and quantify various types of risk, in considering the nature of various types of risk-related basis, in which the insurance company's overall risk the level of proposed capital requirements to achieve the right of the same size and risk profile of the different insurance company discrimination. In the specific process of improvement, you can start underwriting risk, and gradually the business risk, investment risk, and all other risks introduced into the calculation of minimum capital, finally, achieving solvency regulation on the basis of a comprehensive risk management; Third, setting different grades minimum capital requirements to deal with the different insurance; Fourth, the calculation of the minimum solvency risk should be reflected in the reserve and re-insurance risk; Fifth, further strengthen dynamic solvency monitoring and early warning systems; Sixth, it should strengthen information disclosure intensity and gradually establish insurer solvency rating agencies...