A Study On The Risks Of Solvency Capability Of Insurance And Insurance Companies From The Perspective Of Internal Control

Property insurance companies effectively operate the property insurance business,including property loss insurance, liability insurance and so on. The existence and effective functioning of Property insurance companies have far-reaching significance to promote social development and stable social patterns. Due to increased competition and lots of other reasons in recent years, many company’s size has been growth rapidly. However,more issues has been exposed in risk management and control while the strength increased.These risk factors and management oversights affect the company’s overall solvency levels and operating conditions. From the five elements of internal control perspective, this paper use literature review method, normative research method and case analytic method, firstly studied causes of risk and status of operation of whole property insurance industry. Then choose Y property insurance company which has representativeness with good momentum of development as case study corporate, analyzed the company’s internal control status and solvency levels. This paper also studied the interaction and mutual influence of internal controls and solvency. In this part, the author explore associated indicators, illegal behavior and corresponding cases about Y property insurance company’s business links, in order to excavate the company’s drawbacks, particularly the existing risks of business links. And presented targeted suggestions and measures for improvements from the aspects of strengthening related concept of companies and training, improving and strengthening the system of monitoring indicators, strengthening control activities such as improving underwriting, claims and other aspects risk management, strengthening management of information systems, and eventually extended the problems and measures to the entire P &C industry.