Research On Enterprise Risk Management Of Chinese Life Insurance Sector

At the very beginning,the insurance industry is closely integrated with risk,and is so called “The Industry of Risk Operating”. Therefore, risk management and prevention is an everlasting theme of the insurance industry. China’s insurance industry started a lot later than the western countries, compared with the hundreds of years of foreign insurance business, China’s insurance industry still appeared to be immature, both from the perspective of risk management and operation. Domestically, commercial banks had an earlier start, as the leader of Chinese financial sector, commercial banks has accumulated more profound experience and methods, which in some degree, is adaptable to china’s insurance company. But at the same time, the Chinese insurance industry have their own way of doing business and risk characteristics, they cannot completely copy the successful model of the foreign insurance companies or domestic commercial banks. Speaking of life insurance companies, since the recovery of the 1980 s of the last century, which have experienced rapid development, is now gradually entering a stable period. However, due to scale profit model of the extensive management, risk management was not given enough attention, which is an important cause of the current development bottlenecks encountered in the life insurance industry.This article begins with the perspective of traditional risk analysis by the operating types of life insurance companies, then starts to analyze the risk characteristics of the life insurance company, and introduces enterprise risk management. As which is often used in performance management, RAROC indicator is chosen for company indicator calculations and statistical tests comparisons using historical data, by which to illustrate the central role of‘Quantitative Risk Analysis’, in the enterprise risk management framework. At the end of the article, through the introduction of information technology risk management, the problems of life insurance companies to establish a enterprise risk management information system currently experiencing is analyzed.Specific topics of article include the belows:1) Summarizes domestic and foreign historical research literatures, describes current status of the risk qualitative analysis, quantitative analysis and information technology applications in life insurance risk managementrecently.2) According to one of the typical risk classification references, "Life Insurance Company Enterprise Risk Management Guidelines", established by China Insurance Regulatory Commission, historical data and key indicators of companies are used to compare differences between types of companies and industries, and the risk characteristics of the life insurance company is discussed in detail.3) The quantitative risk analysis method applied to life insurance risk management is used in empirical analysis way, through analysis of the value of core indicators in companys’ operations, the importance of quantitative analysis of the life insurance company’s enterprise risk management is indicated.4) Through the development of risk management techniques, tools relied by risk management, the relationship of quantitative risk analysis and risk management informationalization, the value of risk management informationalization to modern risk management is discussed.5) According to the order of achievement, a feasible proposal of enterprise-wide risk management is put forward, and the trend of information technological risk management is conceived.