Empirical Research On The Impact Of Governance On Risk Taking Of Insurance Company

With the acceleration of the globalization process,the insurance industry is facing increasing risk and increasing complexity.Good corporate governance is conducive to strengthening the overall risk management of insurance companies to promote the sound development of insurance companies.To this end,the China Insurance Regulatory Commission in 2006 introduced insurance company governance supervision to establish market behavior,solvency and corporate governance three pillars of supervision,and to gradually strengthen the supervision of insurance companies.After ten years of exploration and development,China's insurance company governance has been from the simple emphasis on mechanism construction,system compliance development to focus on the effectiveness of the stage,this paper from the perspective of risk assessment insurance company governance effectiveness,with strong theory and Practical significance.On the basis of the literature review at home and abroad,this paper chooses 107 insurance companies as the research sample,and selects the agent variables from the aspects of overall risk,leverage risk,underwriting risk and investment risk to quantify the exposures of insurance companies,corporate governance,compliance level and content of the corresponding index measure the level of corporate governance,insurance companies to study the impact of governance risk on the impact.After that,this paper further refined the overall governance index into specific governance elements to study its impact on the risk.Finally,this paper carries out the sample-based robustness test.Through the empirical analysis,this paper finds that: from the general index to measure the insurance company governance to effectively control the risk;from the different levels of compliance,independent compliance to suppress the insurance company risk-taking behavior,and compulsory compliance did not play a valid;from the different elements of compliance,the management of the board of supervisors of the joint-stock insurance company and the management of the shareholders of the restricted insurance companies can curb the risk-taking behavior;from the specific governance elements,the proportion of the independent directors,the number of meetings of the board of directors and the number of meetings of the board of supervisors can effectively restrain the overall risk.The size of the board can effectively inhibit the risk of insurance companies and the proportion of the largest shareholder and the proportion of independent directors can effectively inhibit the insurance company investment risk,and the size of the board of supervisors may increase the risk of insurance companies and underwriting risk.On the whole,China's insurance company's governance has played a certain role in restraining the risk,but it is ineffective to force compliance,partial management sub-index and some management elements can not be effective.This conclusion requires that China's insurance companies to further focus on and improve the effectiveness of governance and risk management level,to promote the insurance company to effectively play the social "stabilizer" and economic "booster" role.