Research On The Construction And Topological Characteristics Of The Equity Networks Of Insurance Groups Based On Complex Network

In order to enhance the competitiveness of the insurance industry in Chinese financial market,more and more insurance companies choose to take group operations.By the end of December 2018,there are 12 insurance groups in China,and they have absolute advantages in both the size of the company and the range of business in the insurance market.However,the equity relationships of the insurance groups become "networked" under the influence of the pattern of group development,which further increases the difficulty of equity and shareholder management,even corporate governance,and also poses a huge challenge to the supervision of the insurance regulatory authorities.This paper takes 12 insurance groups in China as the examples,taking the insurance groups,the shareholders and the subsidiaries as nodes,and linking these notes with the equity relationships,and use Gephi to build the model of the equity network of the insurance group based on the theory of complex network.The research studies the topological characteristics of the network such as graph density,degree distribution,diameter,clustering coefficient,community and centrality from the perspective of the overall network and a single node.It is found that although the overall connectivity of the equity network of the insurance group is not high,there are clusters of nodes around the core nodes in the network where the related transactions among the organizations are close and highly risky,forming some association loops(circles),and the risk of related transactions is prominent.This paper combines the theory of complex network with the equity relationships of the insurance groups to construct the equity network for research,which provides new ideas for regulation.The insurance supervision department should strengthen communication and cooperation with other regulatory authorities and jointly supervise and manage the model of the equity network to improve the regulatory and cooperation mechanism.The insurance supervision department should strengthen the disclosure system of related equity information,and regulate the transactions among the companies whose clustering coefficients are non-zero and triangle numbers are large in the equity network by considering the impact of cross-shareholding to prevent the risk.The insurance supervision department should identify and focus on monitoring core companies with high degree or centrality in the equity network andestablish the effective risk isolation mechanism for core companies that appear in multiple equity networks at the same time.