Empirical Research On The Impact Of Governance On The Solvency Of Insurance Company

Since 1978,China's insurance industry has resumed operations,and the insurance industry has been growed rapidly.China's insurance industry is responsible for the protection of society as a whole,due to the insurance company shareholders in the operation of the limited risk.The insured as a whole on the company's investment and contribution is far greater than the shareholders.The solvency of an insurance company refers specifically to the economic compensation capacity of an insurance company for its insurance liability.The research on the influencing factors of the solvency of insurance companies has become the focus of insurance supervision.How to protect the interests of insurance companies,so as to ensure the sustained and healthy development of China's insurance industry has always been the focus of academic and practical circle.This paper focuses on the solvency of Chinese insurance companies from the perspective of corporate governance,and selects the solvency index of the insurance companies.Based on the theoretical analysis and the general index of corporate governance,the paper analyzes the measurement method by using the least squares regression analysis,and selects the corresponding control variables according to the theory and the actual situation,in order to verify the influence of the insurance company on the solvency of the insurance company.The results show that the total index of corporate governance is positively correlated with the solvency of insurance companies.Secondly,from the different levels of the insurance company's management compliance,the compulsory compliance has no significant effect on the solvency,and the independent compliance index has a significant positive correlation with the insurance company's solvency margin.From the perspective of different contents of insurance companies' governance,it is found that for the joint-stock insurance companies,the sub-index of the board of supervisors and the internal and external audit sub-indices are respectively related to the insurance companies Solvency is not positively related to the insurance company,and the rest of the governance sub-index does not play a significant role in the solvency of the insurance company.However,for a restricted insurance company,the different content of the insurance company has no significant impact on its solvency.Thirdly,in the aspect of corporate governance,the empirical results show that the proportion of the largest shareholder and the size of the executive are positively correlated with the solvency of the insurance company,but the rest of the corporate governance elements are improving the solvency of the insurance company with invalidity.At the same time,the empirical results of each part are lagged with one period of robustness test,the empirical conclusion is consistent with the previous,in order to verify the robustness of the empirical results.To sum up,insurance company governance is an important factor affecting the solvency of insurance companies.Insurance corporate governance has an effective role in protecting the interests of policyholders as a whole.