Font Size: a A A

Study Of Life Insurance Companies To Venture Capital Method

Posted on:2002-10-09Degree:MasterType:Thesis
Country:ChinaCandidate:J W WangFull Text:PDF
Abstract/Summary:PDF Full Text Request
As the solvency is the sole of current insurance regulation, the subject of the article is to research how to introduce the Risk-based Capital (RBC) into our solvency regulation system. The types of solvency regulation of the world are divided into three: "North America ","UK"and "former Japan and West German " RBC is developed by the NAIC (National Association of Insurance Commissioners ) of the United States. The purpose of RBC, which became part of the annual statement beginning in 1993, is to provide capital requirements that reflect differences in the risk compositions of asset and liability portfolios among insurers. RBC differs from the above approaches to dealing with the solvency of life insurers in that it is based upon a formula that regulators use to derive a life insurer's threshold level of capital. The formula-driven calculation of capital is then compared with the insurer's reported statutory capital. Establishing a means of setting capital standards that recognizes a life insurer's size and risk profile, RBC provides powerful set of new enforcement tools for the insurance regulators that is unprecedented in insurance regulation. If reported surplus below comfortable levels it will respond by exercising different actions to correct situation. At the same time, using the solvency regulation experience of the United Kingdom for reference , the solvency regulation system of our country still has some problems. In order to assimilate nutriment of RBC, and to better the current solvency regulation system, we must improve related laws and regulations prior to the introduction of RBC. The rationale of the risk factors are discussed in the last part of this article.
Keywords/Search Tags:Risk-Based Capital . asset risk pricing risk interest-rate risk general management risk
PDF Full Text Request
Related items