Property Insurance Company Risk Monitoring Empirical Research

In recent years, property insurance has developed rapidly with the fast developing of the economy and society in China. However, there are usually some problems of profitability, solvency and insurance capacity, which are as results of the deficiency or invalidation of risk management. In some sense, whether the property insurance company can operate steadily and exist continually depend largely on the effectiveness of its risk management. How to manage the risks of the property insurance company effectively is a major problem commonly faced by the property insurance company.To solve this problem, the large number of scholars at home and abroad did research and got rich research results. Many foreign scholars focus on how to divide the insurance company’s risk theory theoretically.The domestic researchs lag behind. On this basis, the starting point of this study is mainly empirical analysis, and research the risk management of our country’s insurance company in order to provide some effective reference for the actual economical society to solve the generally difficult problem, and some new horizon and methods for our country’s property insurance companies’actually risk management and the related academic research to refer to.This article comprehensively analyses the source of property insurance companies’risks and the problem of how to manage them. We build out a property insurance company’s risk management framework. And then we choose24Chinese property insurance companies’ financial data as a sample, using K-means clustering analysis to explore the level of property insurance companies’ risk profile and make sorting. We also examine the above companies’ risk profile by18regulatory indicators, and select15indicators of them to do factor analysis in order to describe the industry ranking of those companies’ risk management and where the gap with the industry average lines in. We find that the risk monitoring indicators can well reflect the status of risk management for the property insurance companies, and the levels of many Chinese property insurance companies’ risk management are below the industry average. We additionally find that the factors which can affect asset quality are also the fundamental factors which affect the level of property insurance companies’overall risk profile. What’s more, underwriting risk and credit risk still remain the main impact of property insurance companies’ industry rankings.