The Research Of Building Financial Risk Management System In China’s Insurance Company

As the history of the insurance industry in China continues to develop, China insurance industry has experienced a long process of development, initially in China’s insurance industry can be summarized as:small scale, low level of risk management, weak foundation. Now the insurance industry in China after a long process of development, has gradually got rid of the foundation is weak, the low level of risk management, not essential dilemma, gradually become to promote economic development, social stability, relationship beneficial to the people’s livelihood pillar industry, these fully demonstrate China’s insurance industry has reached a new development stage. On one hand, China’s reform and opening up the pace of increase, the international economic exchanges between the increasingly close, but the insurance industry as an emerging industry in China must conform to the trend of the times to enter the international market, this will provide further development of Chinese insurance industry to provide more opportunities, but at the same time, we should also pay attention to a series of challenges to and opportunities the most obvious, the challenge is the insurance industry in our country and will face more complex and changeable market environment; China’s insurance companies on how to more complex and changeable market environment and grasp the opportunity to become the primary problems in China’s insurance industry development faces; on the other hand Chinese government attaches great importance to the development of the insurance industry, provides many powerful policy support for the insurance industry, which prompted the rapid development of China insurance industry, the insurance market has also been continuously improved, China’s insurance industry in the international market presence for the foreign market entry China insurance market opens the door, the insurance industry is facing more intense competition, the competitive environment forces all insurance companies continue to innovate in the management mode, management, thus in the fierce market competition to obtain Advantage, better survival and development. The above analysis we can see that the market environment policy and economic factors have a great influence on our insurance company’s business development, this also means that in the changing internal and external environment of insurance companies face faces more complex and more huge financial risk, which decides the importance of financial risk management of insurance the company’s.Since the reform and opening up, with China’s rapid economic development, the development of insurance industry is very rapid, premium income showing explosive growth. In2004China’s premium income reached431800000000yuan, an increase of11.3%; by the end of2012, China to achieve premium income of1549000000000yuan; an increase of8%. Development can be said to the insurance industry, has become China’s financial market, the largest provider of funds. So the healthy development of insurance industry is not only related to the people’s interests, but also to the economic and social order and stability. However, from the world insurance industry present situation, China’s insurance industry is still in the initial stage of development, there exist many problems in the management, especially the financial risk management, the problem is particularly prominent. On one hand, the insurance capital structure is single, the capital adequacy ratio did not get attention, the low utilization rate of investment, the investment structure is not rational; on the other hand, the great uncertainty of financial risk management, risk factors at all times about the financial risk management decision. Therefore, the positive construction of financial risk management system of China’s insurance industry has a positive and practical significance.In this paper, the thread and the other five chapters. The previous section from the development of China’s insurance industry status,to illustrate the importance of financial risk management on the development of China’s Insurance industry. Then, the insurance industry’s financial risk, related theories and concepts of financial risk management in insurance industry,discusses the necessity, the reason of financial risk in China’s insurance industry’s management present situation and the construction of system of financial risk management of China Insurance industry. Then on this basis,combined with the actual situation of China’s insurance industry, and constructs a set of insurance industry risk management system. In the construction of the financial risk management system, combined with the insurance business and financial characteristics of selecting the appropriate,early warning indicators of financial early warning variable and can represent the characteristics of the insurance industry, the early warning model, this should be the core part of the system, the early warning model of financial risk indicators to quantify signs corresponding prevention and control financial risks, and the sustainable development of the insurance industry steady operation is undoubtedly of great significance.