Reform Of Solvency Supervision Of China Based On European Solvency Ⅱ

Insurance solvency refers to the ability of insurance company that makes them can pay all maturing debt and handle future risk. Solvency, as the core of the insurance supervision, is an important factor that affects the insurance company on continuing operation. It is also an important aspect of insurance companies regulation and the primary goal.With the continuous development of the finance and economy, the risks that insurance companies facing are increasing widely. The solvency regulatory system with risk-oriented functions and internal management concerning about the solvency of the insurance company have been praised highly by more and more developed countries. Exploring new solvency regulation reform programs has also become the focus of Chinese insurance regulatory authorities.Solvency regulatory system in China is established on the basis of Solvency I which is simpler in risk study. With the high-speed development of the financial markets as well as the complexity of the structure of capital structure, the shortcomings of the solvency regulatory system in China is gradually exposed. To further strengthen the solvency regulation, improve the regulatory regime system, China is actively exploring to construct the second generation of solvency regulation system. Solvency II as the most representative research, integrating the world’s latest risk management system with risk assessment methods, is worthy of learning.This paper is stated through four main parts:Part one introduces the research background and the practical significance of the theory. According to the analysis of domestic and abroad theory, make a summary of Solvency II and our solvency reform progress.Part two gives a review the European solvency system reform and summarizes the characteristics and reforming trends. Thus this part carries on a comprehensive analysis on the overall theoretical framework of Solvency II, trying to summarize the core concepts and technologies and analyze the impact on the European market.Part three introduces solvency regulatory reform process of China. By analyzing the characteristics and deficiencies of the existing system, it leads to the necessity of reform.Part four is stated on the basis of the analysis above. It puts forward the objectives and principles of the solvency regulatory reform in China and explores the level of development which should be adapted for national conditions and insurance solvency regulatory system of China, then make some suggestions on the reform.In this paper, process of exploring solvency regulatory system has the following two characteristics:Firstly, the introduction of the Solvency II is more systematic. And the paper compares Solvency I with Solvency II in risk inspection, internal management, capital measure methods and makes analysis of the impact of the implementation of Solvency II on the EU insurance market.Secondly, on the basis of abroad latest ideas and methods, analyze the applicability of China’s insurance market.And make commendations to the solvency reform of the regulatory system combined with China’s specific national conditions.