Research On China’s Insurance Solvency Regulatory System

Insurance is an important part of the modern social security system. Currently, theacceleration of economic globalization, China’s economy has maintained rapid growth, hasprovided a broad space for the development of China’s insurance industry. Opportunitiescoming at the same time bring a huge challenge in increasing competition in the insuranceindustry and risk, and also put forward higher requirements on the insurance regulatorysystem. The core of the modern insurance regulatory system is a system of solvencyregulation, the late start of China’s insurance industry, regulatory solvency lagging behind itsresearch and improvement has become an urgent task. In this paper, the integrated use ofspecifications, comparative studies, economic analysis and other methods, to learn the systemand the experience of the advanced countries, solvency regulatory system in China.The paper is divided into four parts except the introduction.The first part of the theoretical basis of insurance solvency regulation. Illustrates thebasic concepts and basic principles of the solvency of insurance companies, which furtherdistinguish the a static solvency regulation and dynamic solvency regulation, and pointed outthe drawbacks of static regulatory, for the protection of the healthy and orderly developmentof the insurance industry should implement a comprehensive dynamic regulation. The sametime, the operating characteristics of the insurance industry, the aspects of effective insuranceregulatory trends as well as international insurance regulatory developments expounded thenecessity of solvency regulation as the core of the insurance regulatory system.The second part of the development and status quo of China’s insurance solvencyregulation system. This section first reviews of insurance solvency regulation system change,pointed out that the regulatory solvency for the core system framework has been graduallybuilt molding, and then from the capital adequacy ratio regulations, the dynamic solvencyregulatory rules and auxiliary regulatory regime several aspects the system of the status quoof China’s insurance solvency regulation.The third part of insurance solvency deficiency of the regulatory system." Several majordeficiencies of the current system of solvency regulation. The first is the lack of riskassessment on the insurance company’s capital, neither rational distinction between the riskfaced by different insurance companies did not fully consider the risk factors. Second, dynamic solvency regulation is not in place, the lack of an insurance company’s futureoperating conditions forecast did not take into account the problems of cash flow. Finally,there is the lack of auxiliary regulatory regime, including the aspects of the transparency ofregulatory, insurance fund utilization and auxiliary regulatory system.The fourth part of the solvency of China’s insurance regulatory system recommendations.Major shortcoming in the points chase analysis of the third part of the recommendations,including: the calculation of the capital adequacy ratio of risk assessment as soon as possibleto build a more complete dynamic solvency test systems as well as the perfect auxiliaryregulatory regime.