Study On The Solvency Capital Requirement Of The Small And Medium-sized P&C Insurance Company Under The C-ROSS

The solvency of an insurance company refers to the ability of the company to repay its debts. The maintenance of sufficient solvency has an important effect on the sustainable development of an insurance company, mainly because the stability of the financial system has a significant impact on the overall economy and the public. Once the insurance company goes bankrupt, the insured in the risk of accidents will not be able to get compensation. In addition, indebtedness of insurers is characterized by uncertainty, and although prudent methods are used to assess liabilities, actual experience tends to deviate from the estimates.In order to meet the needs of market-oriented reforms in the insurance industry, the CIRC will launch a risk-oriented solvency regulatory system in 2012, which will be carried out by a dedicated leading group in phases. After three years of research, the CIRC issued 17 regulatory standards and technical standards in February 2015, marking the transition period of the first generation of solvency-oriented regulatory system to risk-oriented second-generation compensation. On January 1,2016, the CIRC formally implemented the second-generation supervision standard, and ended the transition period of the second-generation commissioning.After reviewing the literature on solvency, this paper firstly compares the "second" generation with the "first" generation, and also compares it with EU and US RBC supervision systems. The analysis shows that there are still some differences between the c-ross and the regulatory system of mature markets, but c-ross is based on the characteristics of China’s emerging markets, which ensures the applicability.Then, this paper analyzes Premium Risk, which is also the focus of this paper. The empirical analysis of premium risk is divided into two parts:objective compensation risk analysis and non-objective cost risk analysis.The payout risk analysis is based on the Campagne model, fitting the Beta distribution to the payout ratio, estimating the parameters, and then calculating the corresponding quantile and minimum capital requirement ratio at different confidence levels. Then, based on the beta distribution fitted by the compensation rate, the new quantile corresponding to the confidence level of Beta distribution is calculated by adjusting the cost rate.The innovation of this paper includes the following points:1. In this paper, considering the accounting change of the Insurance Yearbook in 2008.we choose the data of small and medium-sized property insurance company from 2011 to 2015, which guarantees the effectiveness and continuity.2. By now, there has been a lot of literatures on analyzing the solvency minimum capital of property insurance companies, but the analysis of small and medium-sized property and special insurance companies is not enough, this paper uses small and medium-sized property insurance companies as a sample to analyze the specific types of insurance companies and puts forward the feasible scheme of improving the solvency of the small and medium-sized property and casualty insurance companies under the c-ross.3.This paper also compares the minimum capital of the first generation with the minimum capital of premium risk under c-ross, and judges the difference of the two generation supervision system. In the analysis of premium risk, by differentiating the objective payment risk and the controllable expense risk, the regulatory capital can be adjusted by the expense factor which enhances the flexibility and adaptability.