The Influence Of The Solvency ? Of Insurance Companies

Insurance industry is a industry to compensate insurants' economic profits with the fund raised by contract.It's an important brunch of financial industry,as well as a significant part of national economy.With the increase of people's income,the need for insurance rises as well.In the process of economic development,insurance industry makes a impressive contribution to GDP.Adequate solvency can improve enterprise's capital efficiency and promote asset-liability management,so that enterprise can take the initiative to strengthen risk management.From the angle of insurance industry,adequate solvency is the most fundamental support for insurance companies and the foundation to protect the development of insurance industry.Since the first quarter of 2016,the CIRC has asked the insurance companies to deliver the solvency? report,instead of solvency I.China's solvency? bases on our national conditions and combines with Euro II.Different from scale-oriented solvency I,solvency? is risk-oriented.Solvency? regulatory elements are mainly composed of three pillars.The first is quantitative capital requirements,which include quantifying capital requirements,solvency stress test and other regulatory measures.The second is qualitative regulatory requirements,the mainly qualitative evaluation on the risk and risk management which is hard to quantify.Regulatory measures include risk comprehensive rating,risk management requirements and assessment and liquidity risk.The third is the market restraint mechanism.Regulatory measures include public information disclosure of insurance company,information exchange and insurance company credit rating.Solvency? pays more attention to cultivate and guide the market,find the risks and problems timely,and expresses higher requirements on the insurance company's risk management capacity.Taking insurance company X as example,this paper analyzes the X's development and operation from 2015 to 2016,compares its solvency under solvency I and solvency II,and finds that the solvency has improved with the rules of solvency II,which is mainly due to solvency? focuses more on risk and risk management level.With low risk level,sound risk management system,the company's SARMRA is more than 85,so that the solvency has increased.Based on the analysis of supervision rules and case company's situation,this paper puts forward four suggestions on the maintenance ability of insurance companies.Broaden the direction of capital use and achieve diversification of insurance funds to improve the rate of income from investment and prevent risks.Optimize product structure.Under solvency II,the solvency of insurance companies which mainly focus on protection-oriented products has increased,and those mainly focus on investment-oriented products has decreased,so that optimizing the product structure is imperative.Improve the risk management capacity.Under solvency II,risk management capacity is directly linked to the minimum capital.Insurance companies should insist improving their risk management system to promote risk management.Strengthen the expenditure control of management expenses and reduce unnecessary expenses as much as possible.Cultivate talents,improve the staff capability through internal training,and improve the staff efficiency.According to solvency II,risk and risk management capabilities are the real core.Through the supervision of solvency II,the insurance company can better manage and promote,and provide institutional protection for many insurance terms,market-oriented progress of rate,broadening the channels of insurance funds and other new approaches.Regardless of the kinds of coping style and improvement proposals,the ultimate goal is to control risk and improve risk management capabilities,and fundamentally promote the healthy development of insurance industry.