Study On Solvency Regulation Of Life Insurance Companies In China

Solvency regulation is the core content of insurance regulation system, and the essenceof solvency is to maintain continuous operations of insurance companies and protect thefundamental interests of consumers by monitoring solvency risks of insurance companies.Solvency is the guard line concerning the survival and extinction of insurance companies.In terms of international experience and data, among the factors causing bankruptcies ofinsurance companies, the dominating one is insolvency. In recent years, due to the rapiddevelopment of macroeconomy in China and steadily raise of per capita income, the insurancepenetration and density have grown constantly, and the premium scale in insurance industry,especially in life insurance industry, has soared in the past two decades. However, theproblem of solvency crisis still hides behind the brilliant achievements of life insuranceindustry. From the perspective of insurance regulation, since life insurance companies involvewide range of pubic interests, the requirements on operation stabilities of life insurancecompanies are demanding. Therefore, it is quite significant and difficult to regulate thesolvency of life insurance companies.From the perspective of independent third-party, the text thoroughly analyzes theinsolvency capabilities of life insurances companies and puts forward multiple advice ofreform on supervision systems of insolvency capabilities. Therefore, the historical context forsupervision system of insolvency capabilities must be reviewed and studied. The text includes4chapters, i.e. Chapter I Introduction, which briefs on the definition, origin and developmentfeatures of insolvency capabilities and the corresponding supervision, and makes summary onthe nature of insolvency capabilities, Chapter II mainly introduces the supervision structure ofinsolvency capabilities of life insurance industry in USA and EU, Summarize and analyze thefeatures and approaches for supervision of life insurance industry’s liquidation ability indeveloped countries, and the key development direction and trend, focusing on analyzingreference and inspiration of the supervision of liquidation ability in developed countries forthat of our country. Chapter III focuses on introducing liquidation ability of life insurancecompanies in our country and the situation of liquidation ability supervision, and summarizesthe historical context of insurance companies’ liquidation ability in our country; Chapter IVproposes suggestions on how to solve the deficiencies in liquidation ability supervision system by combining current situation of Chinese life insurance industry with theglobalization of life insurance industry and continuous intension of mixed operation, andcomparing with internationally advanced theories and practices for liquidation abilitysupervision.In this paper, the followings are raised for strengthening the solvency regulation ofChina’s life insurance companies: implement the new solvency regulatory mode of venturecapital as the orientations and comprehensive risk management as the means, strengthen therole of the internal control management system of life insurance companies in solvencymanagement, establish the information disclosure mechanism of life insurance companies,continuously improve dynamic solvency regulation, build an advanced comprehensive riskmanagement information system, and improve regulatory efficiency, etc., so as to providereferences for the insurance regulatory authorities to implement the solvency regulation of lifeinsurance companies, and thus the study has relatively more profound theoretical andpractical significances.