Research On Insurance Systemic Risk In China

Insurance group in the 2008 financial crisis exposed the vulnerability of. In recent years, the increasing development of a series of policies and guidelines of the national insurance industry grow, have urged the authorities to guard against the risk problem in the system of the insurance industry to take more effective regulatory measures. Throughout the domestic and foreign research literature, most of the SIFIs and systemic risk were discussed, only for one aspect, the lack of a global understanding of the framework. Under this background, this paper learned the reference international association of Insurance Supervisors (IAIS) recognition system importance of the insurance sector index fisrtly, build the evaluation index system of system of our country important insurance institutions, assess the systemic risk in the insurance industry in our country, from the overall dynamic measure the financial industry as a whole in order.Overall, there are three major contributions in this study. First, the systemic risk related to many basic concepts is given a clear definition, including the system risk, insurance industry system risk. Systemically important financial institutions and importance of the system of insurance institutions are defined. Second, construct the evaluation index system of the system of the importance of the system, which includes the scale of class indicators, geographical coverage indicators, the Internet class indicators, non core business class indicators and non alternative indicators. Property and casualty insurance industry system importance of the insurance company not only in total more than life insurance companies, and concentrated in the highest level, once triggered a crisis, of the insurance industry and even the whole financial system brings the possibility of harm more high, and harm degree may be deeper. Insurance companies in the trend of the group have a huge systemic risk. Third, combined with the principal component analysis method and the system coupling theory, the current risk of insurance system in our country is evaluated. The empirical results show that the coupling coordination between the insurance industry and other industries is increasing year by year, and the influence of the insurance industry systemic risk is rising. The systematic risk of insurance industry has been gradually extended to the financial system, which has been extended to the real economy represented by the real estate industry.Combined with the empirical results, at the end of the paper, this paper gives the policy recommendations for China's system of the importance of insurance institutions and insurance industry. Appeal to the regulatory authorities to implement special regulatory plans for the insurance group; to improve the system of the importance of insurance agencies to absorb the loss of capacity; to establish the system of the importance of the insurance agency special crisis response mechanism. For the whole system of insurance industry risk supervision, proposed to establish a risk linkage of the financial industry risk supervision system, the establishment of risk early warning system.