Research On Influencing Factors Of Non-life Medium And Small Property Insurance Companies’ Solvency

The operation of the insurance company to provide security, taking-risk and share loss as the main characteristics, such as the loss due to the uncertainty of the future cash flows and limited use of insurance funds, insurance companies operating has characteristics such as publicity and high risk. Since 1980 to restore the insurance business, the development of the insurance industry in China has maintained a good development trend. In 2014 the original insurance premium income reached 2.023481 trillion RMB, in the global ranking has become the fourth. But as a result of the insurance industry in China started late, the insurance market development is relatively imperfect, and technical level is relatively backward, underdeveloped capital market, and many other reasons, since 2014, the China insurance regulatory commission on Changan insurance and other three companies of insufficient solvency regulatory functions, exposed the problems of insufficient solvency. In this case, in order to better safeguard the interests of policy-holder and insurant, in order to guarantee the solvency of insurance company has enough, the insurance company solvency regulation is necessary. Not only in our country, the European Union as well as the major countries in the world under the regulatory system of insurance regulators are more and more emphasis on solvency regulation, solvency regulation has become the core of insurance regulation.This paper tries to the Eu solvency regulatory system reform and China’s the second generation of solvency regulation system of whole framework release and just under the background of the implementation, on the financial statements of the small and medium non-life insurance companies in China are analyzed, and select the corresponding financial indicators, according to the result of theoretical analysis to establish the solvency of the financial index system, and using SPSS19.0 on principal component analysis method, combined with 2009-2014, the financial statements of the small and medium non-life insurance companies in our country for small and medium non-life insurance company solvency has carried on the empirical analysis, evaluation of the current our country the status of the small and medium non-life insurance company solvency, analysis the influence factors of solvency.Research shows that Chinese company solvency is inferior to foreign companies, and there are also differences in the extraction of principal components. Finally according to the empirical research, puts forward some proposals concerning the development of small and medium non-life insurance companies to improve their solvency, is the key to improve profitability, enrich the capital, optimize the structure of assets and liquidity, stable operation, reasonable reinsurance, etc. To correctly guide and standardize the second generation of solvency regulatory body provides the theory basis for healthy development, for the insurance company solvency regulation has certain theoretical value and practical significance.