A Study On The Effect Of Universal Insurance On Solvency In Chinese Life Insurance Companies

In recent years,with the rapid development of China's universal insurance business,life insurance companies have accumulated a large amount of funds,and a series of licensing events in which insurance companies acquire high-quality enterprises are frequently staged in the secondary market.However,the excessive development of innovative products will affect the solvency of life insurance companies and seriously may cause systemic financial risks.By studying the impact of universal insurance business on the solvency of life insurance companies in China,this paper can provide certain theoretical reference for the development and supervision of China's universal insurance business.Firstly,this paper analyzes the current situation of universal insurance business development of life insurance companies in China.Then based on the theory of solvency,this paper analyzes the impact of universal insurance business on solvency from the perspective of the influencing factors of solvency of life insurance companies.Then,the panel data model is constructed with the solvency adequacy ratio disclosed periodically by life insurance companies and the comprehensive solvency obtained by the comprehensive evaluation method as the dependent variables,and the impact of premium income structure of life insurance on solvency is analyzed empirically.Finally,some Suggestions are put forward according to the conclusion.The research results show that :(1)China's universal insurance business has problems such as short bond and long investment,guaranteed minimum income,financial product transition and excessive growth,while extensive operation and assessment mechanism,rigid rate regulation and weak consumer insurance awareness are the main reasons.(2)on the one hand,universal insurance business brings investment returns and enlarges the company scale to life insurance companies;on the other hand,it may also bring market impact and even cause systemic financial risks.Universal insurance business is a double-edged sword for the solvency of life insurance companies.(3)as a whole,the coefficient of ULI in the proportion of universal life insurance premium to ULI is negative,either in terms of solvency adequacy ratio or comprehensive solvency,indicating that universal insurance business has a significant negative effect on the solvency adequacy ratio of China's life insurance companies.