Life Insurance Company Supervision

Ⅰ.Purpose and significance of this paperThrough the observation of framework, objectives and functions, contents, index system belongs to external supervision; main contents and index system belongs to internal controlling of life insurance companies' own we can understand the foreign and domestic supervision purposes, framework, methods and main index system at present; internal risk management measures aim to solvency margin and other relevant business procedures include underwriting, investment, finance& accounting, reinsurance and etc, at last, we also draw a conclusion as to the tendency of future supervision . Ⅱ.Basic clue and logic structureOn the basis of understanding of purposes, framework, functions I hope you can have a brief concept about the main contents, methods and index system and you will see the solvency margin should become the core of external supervision, meanwhile, dynamic supervision will replace static supervision and become the dominant supervision method.In addition, life insurance companies also should strengthen self-management of solvency margin and be aware of possible risks may occur in business process, such as, underwriting, investment, finance& accounting, reinsurance.Ⅲ.Contents and viewsContents:1.The purposes, meaning, framework and function of supervision to life insurance companies2.Supervision contents and index systemMarket behavior supervision, include rates, reserve, self-burden amount at risk and application of insurance fundsSolvency margin supervision and index system3.Main contents of internal controlling Self-management of solvencyInvestment risk managementFinance risk managementUnderwriting risk managementReinsurance risk managementInternal controlling regulations and indexViews1.Solvency should be the core of supervision but market behavior supervision cannot be abandoned, at the same time, dynamic supervision will gradually replace static supervision and become dominant supervision method.2.In order to ensure the finance stability and solvency, life insurance companies should not only strengthen self-management of solvency but also monitor the possible risks in relevant business procedures, for instance, underwriting, investment, finance, reinsurance, internal controlling. Ⅳ.Main contributionWe should realize that solvency supervision is not just a function of supervising organization, it should be the requisite of long period, stable management of life insurance companies, above all, self-management of solvency cannot be accomplished by single department and a series of index, accurately, it should be a complicated system involved many procedures and departments.