Research On The Solvency Of ZYRS Insurance Company Based On Grey System Theory

With the rapid development of the insurance industry for decades,insurance premiums have skyrocketed.High-speed development of insurance industry also reflects the strong solvency of insurance companies because solvency capability of reimbursement controls the insurance companies' lives.Firstly,to guarantee the insured interests,the insurance company must have enough solvency capability of reimbursement.Secondly,strong solvency capability is the premise and guarantee for the sustainable development of insurance companies.However,the growth rate of major domestic insurance companies has significantly slowed down since 2011 arising from the reduced solvency ratio,which significantly affects the profitability and market competitiveness of the company.Therefore,solvency capability of insurance companies is one of the most important condition for sustainable development.Targeting on ZYRS insurance company for doing this research,this paper does a horizontal and vertical comparison analysis on the present management situation and the solvency capability of ZYRS insurance company.Then it emphatically analyzes the effect factors which restricts the solvency capability of ZYRS insurance company and put forward suggestions for further improvement by analyzing the affecting cause.In terms of China's life insurance market,this study is of relatively high theoretical for the sustainable development of insurance companies.At the same time,it has certain reference significance to the performance of the supervision organization of insurance companies in China.Based on financial management and insurance regulation in theory,the paper selects eight internal and four external factors which restricts the solvency capability,according to the present management situation and the solvency capability of ZYRS insurance company.Then it does correlation analysis from three aspects,including g grey absolute correlation degree,grey relative relational correlation degree and grey relational degree.The results show that it is inflation rate,operating expense ratio and investment yield that have a great effect on solvency capability.Meanwhile,the writer selects other insurance companies which are with similar scale and business for analyzing and verifying.As a result,the affecting factors concluded in this paper is effectively verified in the field of insurance market.This paper proposes to improve the solvency capability of ZYRS insurance company from three aspects.First,strengthen the external preventive measures of the solvency risk of ZYRS insurance company;Second,improve the internal supervision system of ZYRS insurance company;Third,control the capital flow direction of ZYRS insurance company strictly.