China Life Insurance Company Solvency Analysis

With the high development of Chinese insurance, the insufficient of solvency appears gradually. The exposure of insolvency risk in insurance industry will probably endanger the stability of whole financial industry and society. Therefore, it is full of significant theoretical value and certain realistic meaning for us to research solvency risks and put forward the measurement on risk precaution on China life insurance companies.In the paper, the Chinese life insurance companies are the research objects. The author analyzes the solvency level and the influencing factors of solvency in the life insurance companies, combining the research method of theory analysis and demonstration. In the part of the demonstration, taking the China Life Insurance Co. Ltd as an example, the author designs the index system reflecting solvency. And the paper uses factor analysis to obtain main influencing factors of the solvency of China Life Insurance Company through the analysis of the integrated scoring of annual solvency. These factors are structural of funds allocation, extraction of legal reserve, capital adequacy and level of management. Therefore, we need to improve these factors in order to enhance the solvency of China Life Insurance Company.At last the paper arrives at a conclusion: China life insurance companies'solvency condition is for the better since implementing solvency regulation and it should be enhanced more far-reaching. Finally the paper presents the corresponding measurements aiming at the influencing factors of the solvency condition. The solvency level of life insurance company should be enhanced by taking new products development as the centre of gravity competing; broadening funds using channel of life insurance and perfecting insurance management of investment;raising funds through stock market and ensuring that capital of life insurance companies are plentiful;building-up and perfecting reinsurance system and dispersing risk within insurance system;ascertaining the appropriate reserve extracting proportion and accumulating scale;enhancing operation and management level and so on.At the same time, the insurance supervision departments should reinforce the solvency supervision and improve the related policies and regulations, providing good macro environment for the development of life insurance companies.