Research On The Influence Of The Changes Of International Financial Reporting Standards On The Solvency Supervision Of China's Insurance Industry

China's insurance industry to form a solvency supervision as the core of the insurance supervision system.At present,the insurance industry is faced with the macro pressure of lower interest rates,as well as the competitive pressure from new entrants(such as "Fintech companies"),how to optimize the structure of insurance products,to guard against the risks of the insurance industry,insurance regulators need to pay close attention to the current goal;Insurance regulation will face a more challenging part in the next few years Recent changes in International Accounting Standards: IFRS9-Financial Instruments and IFRS17-Insurance Contracts,in accordance with the current requirements of the International Accounting Standards Board(IASB),Insurers will formally implement IFRS9 and IFRS17 in 2022.IFRS9 and IFRS17 are the two major international accounting standards that are most closely linked to the insurance industry and will have a deep and extensive impact on the development of the insurance industry and the regulation of insurance solvency.Under the background of the development of international convergence of accounting standards in China,it is urgent to study IFRS9 and IFRS17 in depth,but the related research with IFRS9 and IFRS17 is still in the preliminary stage: from the point of view of a single Research object,The research on IFRS9 is more focused on the impact of the new financial instrument standards on the banking industry,but with the application of IFRS9,the impact of insurance companies is increasingly discussed,the main research object of IFRS17 is insurance companies,but also life insurance companies mainly,from the research content,to the insurance company management perspective mainly,Mainly to the insurance company contract liabilities Accounting measurement,operating profit as the focus.Therefore,on the basis of the existing research,this paper studies the influence of IFRS9 and IFRS17 on the solvency supervision of insurance companies,and gradually expands the research scope of IFRS9 and IFRS17.The core content of this paper is to construct the analysis system of the influence of the change of accounting standards at home and abroad on the solvency supervision of insurance industry: through a comprehensive combing of the theoretical connotations of IFRS9,IFRS17 and the solvency supervision rules of insurance companies in China,this article focuses on how IFRS9 and IFRS17 pass through the actual capital,The minimum capital affects the solvency adequacy ratio,and makes suggestions for the optimization and development of the solvency supervision of insurance industry in China,so as to form a more complete analysis framework.The first part of this paper is the introduction,mainly introduces the research background and significance,the way of thinking,that is,the 1th chapter.Based on the change of international accounting standards,this paper focuses on the influence of IFRS9 and IFRS17 on the supervision of insurance solvency,and the overall framework of solvency supervision of insurance companies in China is closely related to accounting information,and the change of accounting standards will affect the calculation of solvency adequacy ratio.With the implementation of the two standards and the promotion of the second phase of the "C-ROSS" project of China's insurance industry,this study has a certain contribution value for supplementing and perfecting the insurance accounting theory and solvency supervision system.The second part shows the latest development status of accounting standards at home and abroad,that is,chapter 2 and chapter 3.The 2nd chapter summarizes the domestic and foreign scholars on the accounting standards,insurance solvency supervision of the current situation,from the existing research can be seen that China's insurance compensation for the second generation of the overall framework and accounting information is closely related,IFRS9 and IFRS17 implementation is imminent,the two criteria on the impact of solvency of the relevant research is still in a blank,Therefore,it is necessary to study how IFRS9 and IFRS17 have an impact on solvency regulation.The 3rd chapter compares the latest changes of IFRS9 and China's new financial instruments accounting standards,IFRS17 and China's current insurance contract accounting standards and similarities and differences.Firstly,through the classification of financial assets and financial liabilities under IFRS9,the classification differences of financial assets under the old and new criteria are compared,and the expected credit loss impairment model of IFRS9 and its measurement effect on financial assets are interpreted in detail.Then,through comparative analysis of the difference between IFRS17 and China's insurance contract accounting standards,mixed contract splitting is the first step,detailed introduction of the insurance contract in the initial confirmation of the difference in criteria,focusing on the comparison of IFRS17 general model,premium allocation approach,variable fee approach and the difference between the three models and the subsequent measurement methods under the current guidelines in China.The third part is the core part of this paper,focusing on the analysis of the impact mechanism of IFRS9 and IFRS17 on the solvency supervision of insurance companies,that is,chapters 4,5,6 and 7.The 4th chapter focuses on the transmission path of the influence of accounting standards and their changes on the solvency supervision of insurance companies.Firstly,the difference between accounting measurement and supervision measurement of assets and liabilities and the difference of accounting measurement and compensation of life insurance contract liabilities are summarized.And then,Gradually clarify the transmission path of IFRS9 and IFRS17 influence on the calculation of solvency adequacy ratio of insurance companies: IFRS9 and IFRS17 respectively,through the asset end and the debt end affect the recognition of assets,recognition responsibility,elaborated on how the criteria affect the actual capital and the Minimum capital measurement,Have a direct impact on the calculation of solvency adequacy ratios.The 5th chapter takes the listed insurance group Ping An as an example,indepth analysis of the impact of IFRS9 on solvency supervision,the implementation of IFRS9 makes China Ping An FVTPL financial assets increase profit and loss fluctuations become larger,the company's asset allocation is more conservative so that the actual capital and minimum capital can maintain a relatively stable trend.This part holds that: IFRS9 's financial asset classification and asset impairment model will increase the fair value fluctuation of assets,which may make the actual capital fluctuation of insurance companies become larger,and the lowest quantifiable risk capital for calculating financial assets is based on accounting classification,which can not reflect the risk essence of financial assets.The 6th chapter analyzes in detail the impact of IFRS17 on the actual capital and the minimum capital of quantifiable risk,and discusses the possible effects of several important changes in the measurement of insurance contract liabilities under IFRS17 on the actual capital and the minimum capital.First of all,the change of discount rate,the author thinks that the current interest rate of IFRS17 in China is difficult to implement,solvency supervision and IFRS17 on the insurance contract liability discount rate of the docking is very challenging,put forward two solutions to this,the second is the marginal edge of contract services,contract service marginal is an accounting concept,It is recognized as the actual capital in solvency supervision,so the absorption mechanism of the marginal of contract service under IFRS17 will have an impact on the actual capital,and then the effect of the implementation of the variable cost method on the actual capital,the author thinks that the investment component should be eliminated when measuring the recognized liability of the insurance product using the VFA model.Finally,this paper analyzes the effect of IFRS17 on quantifying the minimum capital of risk by analyzing the change of discount rate of insurance contract liability and the Minimum capital relationship of interest rate risk and the relationship between IFRS17 liability assessment and insurance risk Minimum capital.IFRS17The 7th chapter explores the linkage influence of IFRS9 and IFRS17,takes Z company as an example to simulate two criteria and how to influence the solvency adequacy ratio of insurance companies,and the simulation results show that:(1)When the accounting classification of assets remains unchanged,the discount rate discounting of the use of liabilities reflecting the current information will increase the real capital fluctuation;(2 When the criteria for maintaining the discount rate of liability assessment remain unchanged,the different accounting divisions of the same asset make their corresponding minimum capital different and have different effects on solvency results;(3)When assets and liabilities are measured at fair value reflecting current information,fluctuations in solvency adequacy ratios decrease.The forth part is the conclusion and recommendation,that is,chapter 8.This part summarizes the research results of this paper,and puts forward some suggestions on the influence of insurance companies and insurance regulators on the supervision of solvency by the change of new accounting standards.First,in response to the measurement requirements of IFRS9 and IFRS17,insurance companies need to balance the relationship between corporate profits and solvency regulation.Second,for the financial assets of insurance companies,adjust their riskoriented measurement of the minimum capital method,so that it is more in line with the essence of risk.Third,regulators need to brainstorm to develop an assessment rate that conforms to China's economic environment and the characteristics of the insurance market.The four is to standardize some accounting evaluation difficulties in IFRS17,in order to better improve the solvency supervision system of insurance companies.The main innovation of this paper lies in: From the perspective of IFRS9 and IFRS17,it analyzes the similarities and differences between the two international accounting standards and the relevant accounting standards in China,and probes into the interaction between accounting standards and the solvency of insurance companies,and inspires new research ideas.This paper refines the main contents of the two new standards,and constructs the framework of the analysis of the solvency supervision of insurance companies by means of theoretical analysis,case analysis and simulation research,which has certain practical guiding significance.However,due to the difficulty of the new guidelines and has not yet been formally implemented,limited to the author's limited accounting and actuarial knowledge,demonstration analysis or has a profound place,the more complex actuarial model and other content has not been further studied,in the future if more data can be further empirical analysis.