Operational Risk Management Of ABC Insurance Company Under Second-Generation Solvency Supervision System

In 2016, the second-generation solvency regulatory system of Chinese insurance industry was formally implemented. The implementation of the second-generation system marked the transfer from scale-oriented evaluation system to the risk-oriented evaluation system.Under the supervision framework of the second-generation system, the insurance company's risk are classified into 7 categories, namely insurance risk, market risk, credit risk, operational risk, strategic risk, reputation risk and liquidity risk. And operational risk plays a pivotal role in operational management. Premium scale of China's insurance industry became the second largest in the world at the year of 2016. With the expansion of the premium scale, operational risk of the insurance business enters high-incidence season.Different from other risk categories, operational risk has characteristics like broad coverage, a wide range of influencing factors and lack of history data.This makes the philosophy and technology of risk management of China's insurance companies relatively backward. Until now it is not possible to use a reasonable quantitative method to measure the operational risk. Therefore,improving operational risk management level systematically and enhancing the solvency of insurance companies become urgent problems to be solved.Based on the theory of operational risk, this paper takes the ABC insurance company as the research object. Using field survey method, the paper investigates and analyses 8 projects, which are underwriting sales,claims management, reinsurance, Management, financial management, reserve and information system, according to the business classification of the insurance company under the second-generation system. This aims to acquire a comprehensive identification of factors affecting ABC insurance company's operating risk. Then, we use the analytic hierarchy process to determine the weight of risk factors, and evaluate the current situation of ABC's insurance risk management. Finally, according to the current situation of ABC's operational risk management, the author puts forward the operational risk management suggestions from the aspects of strengthening the operation risk index monitoring, optimizing the system process management and speeding up the information system construction.In short, this paper uses the risk management theory and method to carry on a whole process research of operational risk management of ABC insurance company, and effectively improves its operational risk management level. And the result can provide reference for manager and supervisor from the insurance industry.