Research On Asset Allocation Of Insurance Companies Under The Background Of "C-ROSS"

In 2012,the China Insurance Regulatory Commission began to construct the “China Risk-Oriented Solvency System ”(hereinafter referred to as “C-ROSS”).then in February2015,it issued a formal notice.The notice requires insurance companies to start reporting to the China Insurance Regulatory Commission for “C-ROSS” reports in the first quarter of2016.Which also means that China's insurance supervision has officially started to be risk-oriented.“C-ROSS” relies on the three-pillar model to implement supervision,and quantifies the risk according to indicators such as risk factors,and then selects fund utilization methods based on the results of risk assessment.Its implementation made the investment supervision of the insurance company more relaxed,and the insurance company's diversity of investment methods and freedom of investment model have been greatly improved.Its implementation is of great significance to the entire insurance market.Whether it is continuing to adhere to the regulatory concept of“freeing the front end while managing the back end”,Or established the overall framework which is take the “three-pillar”regulatory system as the core,all of the above has prompted insurance companies to more comprehensively measure the risks they face.“C-ROSS” will effectively promote the rational allocation of assets by Chinese insurance companies,thus more effectively facing market-oriented reforms.At present,“C-ROSS” system has been officially implemented for more than two years.From the “C-ROSS” reports for the fourth quarter of 2017 revealed by insurance companies,it can be known that industry supervision continues to be strict,and many market irregularities that have violated laws and regulations have been rectified.For insurance companies with insufficient solvency,China Insurance Regulatory Commission has also dealt with them according to the specific content of “C-ROSS”.At the same time,In order to relieve the related risks of insufficient solvency,the insurance company also actively seeks countermeasures against its own problems.On the whole,“C-ROSS” has made significant contributions to the transformation and upgrading of the insurance industry,and also promoting the sustainable development of the insurance market,which is conducive to the harmonious development of China's insurance industry.This article is in the context of the successful implementation of the “C-ROSS”.Firstly,the basic information of the “C-ROSS” is introduced,including the background of the generation and the institutional framework;secondly,using existing data,a simple discussion is made on the current status and problems of the insurance companies' solvency,and it is put forward how the insurance company should invest funds under the background of “C-ROSS”;Finally,according to the “C-ROSS” rules,we can establish the Markowitz model,then derive the Pareto optimal solutions corresponding to different risk attitudes and propose proposals for optimal asset allocation of insurance companies.