Applied Research Of China Risk Oriented Solvency System

The definition of solvency capability of reimbursement is an insurance company's ability to repay its debt.Prime cost of an insurance company includes trading cost and risk cost.Trading cost refers to the cost generated during policy holder makes insurance business with an insurance company;risk cost refers to the cost generated after insurance company charges a certain premium from policy holder.Therefore,insurance company collects corresponding reserve funds of each insurance trade after receiving premium to avoid risks and protect the insurant benefit.The government and insurance regulatory authority have passed laws and regulate that the insurance company must be with adequate reimbursement in order to maintain policy holder and the insured benefits.By the end of 2016,insurance fee scale of China insurance industry reaches to 3095.91 billion CNY,total assets of this industry reaches to 15116.916 billion CNY,which becomes the second insurance subject.Hence,solvency supervision system,the core of insurance regulation,gets more and more attentions by regulatory authority.On Aug.13 2014,“The State Council's No.10 National Notice”(hereinafter referred to as “the notice”)raises that insurance is the important industry of modern economy and basic mean to risk management.The release of the notice accelerates the development and transition of insurance industry.The second solvency supervision system(Solvency II)makes insurance industry more sound and health with its three pillars which are quantitative capital requirements,qualitative regulatory requirements and market restraint mechanism as well as overall risk covered.This thesis analyzes the advantage of application of Solvency II by means of studying application of Solvency II system in insurance company A,also raises the system shortage and corresponding solution founded during real application.Through theory and practical cases.First of all,the thesis introduces research signification based on current development background.At first,elaborating the concept and basic theory of solvency II supervision system.In order to further deepen the understanding of solvency II,it analyzes influence effect of solvency II from internal and external aspect.And then overall hold current development of property insurance industry through main body and concentration aspect.Meanwhile analyze the problem existed in current insurance industry and further to the necessity of execution and shortage of solvency II.For better understanding of the application of solvency II,in this thesis,briefly analyze from overall aspect based on three pillars.Next,take insurance company A as an example,also based on three pillars,discuss and analyze actual application of solvency II in company A.At last,analyze the advantage and shortage of solvency II during actual application,and raise solution to these shortages.The issue and implement of solvency II is the only way which must be passed.During official implement of solvency II,many aspect need to be adjusted based on actual condition because its time is not so long.In this case,solvency II still has much investigable value.