Funde Sino Life Insurance Company Ltd Solvency Analysis

For a long time,insurance has three basic functions,including economic compensation,financing and social management,which plays a very important role in the national economy.The insurance company in the management with the safety and health has important significance to the insured,the insurance company and the macro economy.With the recovery of the insurance industry in China,the life insurance industry has maintained a rapid development trend,life insurance premium income in the proportion of total premium income increased year by year,accounting for about 70% of the insurance market share.The solvency of the life insurance company refers to the ability of the company to perform the compensation or payment in accordance with the agreed insurance contract.It is an important part of the company's management,it is the lifeline to the survival of a company.Life insurance industry is different from other industries,its particularity in profit model and large market share in the market.Causing problems of solvency,not only the interests of the customers and company,but also affect the stability of the social and macroeconomic health development.Therefore,adequate solvency is the fundamental guarantee of the interests of the insured,as well as the premise and guarantee of the healthy and sustainable development of the insurance industry.However,with more and more insurance companies crowding into the market and the increasing competition between the insurance companies year after year,as a result,the business risk gradually appears and individual life insurance company has been a serious shortage of solvency.According to my practice experience in Shaanxi branch of Funde Sino Life Insurance Company Ltd,I found the solvency adequacy ratio has dropped on the phenomina in Funde Sino Life Insurance Company Ltd in recent years.So I do the research respectively,using the factor analysis method and grey correlation method to analyze and summarize the internal factors and external factors of Funde Sino Life Insurance Company Ltd's insurance solvency,and try to put forward the improvement of its solvency,which has an important theoretical value and certain practical significance for Funde Sino Life Insurance Company Ltd and other small and medium-sized life insurance companies to improve solvency.