Based On Analysis Of EVA Under The Insurance Economic Capital Allocation

Capital represents a certain economic strength, the insurance industry and to give a full affirmation of the outside world, the economic capital in order to prevent the risk of future unpredictable the established such a fixed capital is most insurance funds have against unknown risk.since 08 economic crisis, each insurance company the risk control as the top priority, capital management, risk control, and the insurance industry all the rights and interests of shareholders is the goal of its business,Since EVA economic value added management idea raises, the shareholders of the owner,through the EVA management idea can well solve the financial often appears in the principal-agent model, through EVA management to the industry’s management and the owner of the industry, that is, the rights and interests of shareholders bundled together, so you can create the industry’s biggest economic added value, so this paper introduce the concept of EVA economic value added the insurance industry,the owner of the industry, so this paper introduce the concept of EVA economic value added the insurance industry.Idea of this paper is roughly as follows:the first is before the scholars at home and abroad for economic capital, and the research situation of EVA economic value added to the contours of the summary, and make the relevant concepts of scholars described, as well as some unique perspective, the second is the condition of the economic capital allocation in China, and the role of economic capital allocation, way of the country’s economic capital allocation is more.Again, we use EVA calculation formula, calculates EVA rate of return, which is on the total economic capital allocation coefficient in the relevant ratio analysis, it is concluded that the size of the EVA rate of return, per unit of economic capital investment brought about by the economic value of the size of the analysisThen, select the five samples of data from various business units of the insurance industry, to carry on the related business economic capital allocation, and then observe the EVA in the process of economic capital allocation of return value of comparative analysis,Finally, according to the insurance company’s EVA five samples of return isn’t consistent with economic capital allocation, it is concluded that the insurance industry in our country’s economic capital allocation and economic value of phase of increased compliance, and puts forward relevant Suggestions and countermeasures.The possible innovation conclusions are as follows:(1) This paper will increase the EVA economic value management concept into the insurance company has advanced economic capital allocation situation, the research of risk management usually economic measure mode combined with function of value creation.(2) To set up the economic value-added assets and optimize the economic capital of EVA sample later adjustment process according to insurance company after the economic capital optimization in various business department to get the optimal insurance company shareholders’ rights and interests;(3) In the samples we select the economic capital allocation of insurance company, insurance company for sample return on various business EVA, establish with EVA as the core of the insurance company internal different business department economic capital allocation methods, improve the economic return on capital transfer of growing up.