Research On Legal Problem Of Insurance Company Solvency Supervision In China

The autonomy and blindness of market decide the necessity of insuranceregulation, the changing market risk and the limitations of Supervision Legal Systemdetermine the necessity to continue to improve the legal system. Development statusof insurance supervision system development showed that building a sound andeffective system of insurance regulation can help to effectively control risks andpromote the healthy development of the insurance industry. A sound and effectivesystem of insurance regulation is formed by the CIRC supervision, the insurancecommunity supervision, the insurance company multi-level system ofself-government and insurance industry self-composed. Insurance regulators centeredin the effective insurance regulatory system, and solvency regulation is the core ofinsurance regulation. The insurance company is mainly engaged in contractingbusiness and the business of insurance funds, the corresponding risk is contractualrisk and investment risk. Risk determines the need for regulation. At present, the mainrisk of the insurance industry is insurance funds risk, national laws and regulations onthe use of methods and the use of insurance funds proportion are also strictly limited.As the use of insurance funds, China’s relevant laws and regulations, including the "Insurance Law", are regulated in many ways, such as the proportion of fundsapproach and respect. Rational use of insurance funds is directly related to theinsurance company’s solvency level, solvency of insurance companies has a directimpact on the insurance interests of consumers. At present，international generallyconsidered that the solvency regulation is the core of insurance regulation, andtherefore strengthen solvency regulation is necessary.May15,2013,China Insurance Regulatory Commission issued the " China’ssecond generation of the overall solvency of the legal regulatory system framework"to establish " three pillars" framework, to guide the construction of the secondgeneration of solvency. February19,2014, China Insurance Regulatory Commissionissued the " China Insurance Regulatory Commission Notice on Strengthening andImproving the use of insurance funds regulated by the laws of proportion " whichstates:if the solvency status does not meet the requirements of the China InsuranceRegulatory Commission, China Insurance Regulatory Commission take measures tolimit the form and proportion of funds. The introduction of a series of new legalsystem, are designed to improve the solvency of the second generation of theregulatory system, but the current " Insurance Law" and " insurance companysolvency regulations" conflict with existing regulations, which need to make changesin a timely manner.Investment of insurance funds is a " double-edged sword ". In theconditions of the insurance industry and capital market, diversification of investmentforms can spread investment risk, increase revenue, and enhance the solvency ofinsurance companies.But when capital market downturn, financial risk of the capitalmarket passed to the insurance industry, which led to changes in the insurancecompany’s assets, and ultimately affect its solvency, may lead to shortage ofinsurance companies solvency.Writing ideas in this paper are: insurance funds have a direct impact on theinsurance company’s solvency. This paper takes a strong representation of Ping AnInsurance funds status for example, analyze the current problems of insurance fundsand the relationship between insurance funds and solvency, summarize specific performance of the impact on the solvency. On this basis, drawing on the experienceof the banking solvency regulation proposes insurance companies and regulatoryagencies to strengthen solvency regulation of specific measures. I hope to makesuggestion to build the second generation of the ongoing solvency regulatory system.