China's Life Insurance Company Solvency Regulation Index System Study

Solvency means ability that the life insurance company can repay thedebt at the specified date, and it's also the foundation for life insurancecompanies to develop persistently and steadily. For the low manageriallever and managerial technique, most life insurance companies in ourcountry have liquidation crisis. So it's an urgent task for the supervisiondepartment to reinforce solvency supervision. As the beginning ofsupervision, a set of indicators of solvency is necessary. Whether thesupervision indicator system is reasonable and consummate or not hasdirect influence to the supervision effect. Therefore, it is of the importanttheoretic and practical significance to study the supervision indicatorsystem of solvency.Due to still an initial stage of our country life insurance industry, wehave to refer successful experience of developed countries with theconsideration of practical situation of our country. Based on thisbackground, the paper dedicates to research on our country's supervisionindicator system of solvency. The structure of this paper includes six parts.The chapter 1 reviews the related theory and educes the clew of thisresearch. The chapter 2 discusses basic principle of supervision indicatorsystem, cards the relationship between related conception, factors, andapplication principle of supervision indicator system. The chapter 3compares the supervision indicator system of the home and overseas, gets the different character of them, and analyzes our country's supervisionindicator system from both the cooperated qualification and the impact ofapplication angle. The chapter 4, using date of most life insurance in ourcountry, employs cross-sectional analysis on the validity of our country'ssupervision indicator system, gets the conclusion that indicator of capitalabundance is abenst of risk presentiment and some indicators ofregulation presentiment are designed irrationality. The chapter 5 putsforward advice on how to consummate our country's supervisionindicator system of solvency. The chapter 6 is the conclusion and theexpectation.