Risk-oriented Solvency Regulation Research In China

Solvency regulation is the most important part of regulation of the insurance industry, which is an important guarantee for the healthy development of the insurance industry, and also of great significance to the healthy development of the insurance industry. At present, the reform and development of China’s insurance industry is entering a new stage, while the insurance solvency regulatory reform is on the agenda. Recently, the China Insurance Regulatory Commission issued a notice on the issuance of ’second-generation solvency regulation system of construction planning’. During this period, making risk-oriented solvency regulation as the object of study, systematic analysis of the status quo of China’s current solvency regulation and problems, has a very important theoretical and practical significance.This article is based of the perspective of risk. The writer takes a combination of quantitative and qualitative methods to analyze of solvency regulatory system in China. Solvency margin is calculated based on the ratio method, with selected data from2008to2012,10insurance companies, which is compared with the solvency margin calculated with our insurance company solvency regulations, in order to analyze the solvency margin regulation problem. Chinese existing regulatory index system is evaluated with data selected from19insurance companies2008to2012, by the empirical analysis of the factor model. The analysis of the current present in the system is given, based on the actual solvency regulatory system in China, including a plurality of new problems. The risk-oriented solvency regulation reformation is in the need now, and some suggestions are given.Analysis of solvency margin ratio method, draw to our solvency margin is set too low, the calculation of the solvency margin should be improved, the current solvency margin regulation on the company’s individual risk reveals a lack of conclusion; empirical analysis of the factor model shows the poor applicability of regulatory index, the number of indicators is set too low, the lack of scientific conclusions; through the comparison with international solvency regulatory solvency regulation, the paper shows that ignorance of the microscopic foundation of the company’s role in China, information disclosure and market conclusions of the constraint mechanism is not perfect, insurance group supervision is full of difficulties. Corresponding to analysis, the following conclusions can be draw:we should improve the risk-oriented capital regulation, and the incentive qualitative risk internal control regulation. At the same time, market discipline mechanism should be established to improve the information disclosure of the insurance company.