Research On The Systemic Risk Of Insurance Industry In China

The outbreak of the financial crisis to the real economy and financial markets caused a strong impact,countries are aware of the need for systemic risk regulation.With the continuous development of China's insurance industry,the status of the capital market is becoming more and more important,so it is very important to measure and prevent the systemic risk of the insurance industry.Based on the theory of financial vulnerability and the theory of information asymmetry,this paper discusses the causes,characteristics,measures and precautions of the systemic risk of China's insurance industry under the new norm.The main reason for the systematic accumulation of systemic risk is the risk spillover effect of the system importance and the pro-cyclicality of economic fluctuation.Aiming at the above two reasons,this paper analyzes and analyzes the systemic risk of the insurance industry from the cross-sectional dimension and the time dimension respectively based on the macro-prudential supervision theory.In the cross-sectional dimension,the modified CoVaR model is used to measure the risk spillovers of the importance of the system.Through the empirical study,the risk of China's peace is greatly increased,and the macro-prudential supervision is needed to monitor the importance of the system.To guard against systemic risks in the insurance industry.In the time dimension,the relationship between the pro-cyclicality of economic fluctuation and the pro-cyclicality of the insurance industry is analyzed.Based on the analysis of the correlation between the premium income of the insurance company and the amount of the reserve provision and the gross domestic product(GDP)The insurance industry,which is one of the troika in financial markets,has a strong pro-cyclicality,so it is necessary to guard against the systemic risk of pro-cyclicality.In order to prevent the systemic risk of our insurance industry,we should strengthen the supervision of the system importance insurance organization in the aspect of the cross-sectional dimension,establish the counter-cyclical policy tool in the time dimension,and strengthen the early warning and the warning to the systemic risk.And also pay attention to macro-prudential supervision and coordination of other economic policies.