Research On Premiums Risk Of Property Insurance In N Province

As the reflection of the 2008 global financial crisis, countries all over the world continuously propelling reform of insurance regulatory, especially in the major developed insurance market, such as the United States, Europe. Solvency as the core content of insurance regulation is the key process of the insurance regulatory reform, e.g. "Solvency Modernization Initiative" of the United States and "Solvency II" of Europe. On February 13,2015, the China Insurance Regulatory Commission officially issued the 17 principles of the new insurance solvency regulatory system, is known as China Risk Oriented Solvency System ("C-ROSS"),means China’s insurance solvency regulation has entered a new stage. C-ROSS will has a big influence in insurance company’s internal management, business structure, capital operation, product development.etc. Solvency affect must be considered when insurance company makes any decision. C-ROSS established a scientific Risk Classification System of China’s insurance industry for the first time. Using three pillars framework to build a comprehensive risk identification and prevention system, fully covered all kinds of risk faced by insurance company. The conceptual framework for C-ROSS consists of three components:Institutional Characteristics, Supervisory Pillars and Supervisory Foundation. (1) To measure the risks of insurance undertakings, scientifically and comprehensively, in order to calculate a capital requirement that aligns with the specific risks within the insurance undertakings’ risk profiles.(2) To mitigate undesirable or unintended risk exposures and determine appropriate capital requirements to strengthen the competitiveness of China’s insurance industry; to establish an effective incentive mechanism to encourage insurance undertakings to improve the management and control of risks and to promote the robust development of the insurance industry in China.(3) To actively explore an appropriate model for solvency supervision in emerging markets and to contribute to the development of international solvency supervision. Using and improving the C-ROSS will be the most important topic of the insurance industry in the future period.Because the development of insurance market had big differences between the eastern and western China, how to evaluate the risk of insurance company’s branch still is the focus of insurance regulation. Through this paper, principles of C-ROSS were directly applied to analyze the N province insurance company’s branches data. According to the analysis of premiums risk of property insurance company branches, and compared with average level, tabled proposal for typically branches and the N province.Through the empirical analysis, this paper verified the effectiveness of C-ROSS principles, in the evaluation of the regional insurance risk, which is a meaningful attempt for the new solvency regulation system used as risk assessment tool. At the same time, the quantitative analysis also a necessary and useful supplement for the qualitative analysis, it can reflect the actual risk more comprehensive.