Solvency Supervision Of The Chinese Life Insurance Industry Research

Chinese life insurance has independently experienced her eight years' history since she departed from wealth insurance. Her administration and development have made great contribution for the development of finance and even whole country economic. With the vigorous development of life insurance for these eight years, her administration and management has had her unique pattern. But a variety of questions have appeared in the process of management The most serious questions is the repayment ability on schedule not only for the policyholder but also for insurance supervision department So solvency supervision is the main content for the supervision department in the process of life insurance management. In order to express the important meaning of supervising for life insurance's solvency ability, this paper starts off from the fact of administration of life insurance companies, combining with the statistic knowledge and insurance knowledge, learning from many experts' researched fruit and expecting to do something for the administration and continuous development of Chinese life insurance.This paper includes five parts:The first part descripts life insurance' independent development process and her function for the development of whole country economy as a part of whole country economy since she separated from wealth insurance in 1996, thereby embodying the important significance of life insurance' existence and continuously strong developmentThe second part mainly analyses incentive factors that result in solvency risk. The paper analyses all kinds of incentive factors that result in solvency risk. The interest fluctuation risk, the abstraction risk of reserve fund and the risk that insurance fund is applied limitedly are all the incentive factors that result in solvency shortage. Subsequently, the paper emphasizes the realistic meaning ofreinforcing solvency supervision of life insurance.The third part is the demonstration analysis implementing dynamic supervision to life insurance. Solvency supervision is not only the important content that supervision department is implementing to life insurance but also the center content. Yet, the decision of expense rate and the abstraction of reserve fund are all static supervision. In order to keep life insurance companies' abundant solvency, assure favorable finance stability and more high credibility and guarantee the insurants' benefit, the most important thing is to work out a suit of basically credible alarm-index system as the efficient tool that can carry out dynamic supervision to life insurance. To embody the important use of dynamic supervision, the paper demonstrates dynamic supervision by looking up data information. The conclusion that Chinese life insurance solvency is faced the risk of gradually dropping is made.The fourth part is the comparison and analysis of the solvency in the world. In order to learn from all kinds of efficient supervision patterns, the paper lists the measurement of solvency ability of "Europe-alliance pattern", original "Japan-German pattern", and "America pattern". Nowadays, China mainly adopts the thought of solvency supervision of "Europe-alliance pattern". China hasn't still had the condition of adopting American Risk Based Capital (RBC) supervision. China should transit to RBC gradually so as to attain to the goal of more efficient solvency supervision.The fifth part mainly puts forwards many measures of solvency supervision in China. This part lists the measures that China has adopted facing solvency lacking. At last, the paper brings forward all kinds of measures that China should adopt for farther strengthening solvency supervision.