Research On The Impact And Causes Of Systemic Risk In China's Insurance Industry

In recent years,the impact of the financial crisis and regional financial crisis on the economy and various fields has caused countries to pay more and more attention to systemic risk supervision.In the middle of the 20 th century,Needham already said in the "History of Science and Technology of China" that after the development of the insurance industry in the future,the positive auxiliary role of the national economy will be manifested,and the development of the insurance industry will also drive the development of commercial markets mature.On August 10,2014,the State Council issued "Several Opinions on Accelerating the Development of Modern Insurance Service Industry" issued by Guofa [2014] No.29,which stated that the insurance industry is an indispensable industry for the stable development of the modern economy and is a risk.The basic means of management are economic "boosters" and social "stabilizers".The level of development of the insurance industry represents to a certain extent the level of a country's economy,civilization and governance.China's insurance industry has achieved leapfrog development in the past ten years or so.In 2016,the premium income ranked second in the world and remains to this day.The scale of the insurance industry market and insurance institutions is growing.This has also led to an increase in the correlation between institutions and an increase in risk transmission effects.The influence of the stability of the insurance industry on the stability of the financial market cannot be ignored.The influence of the economic compensation and financing of the insurance industry on economic development is increasing day by day.The healthy and healthy growth of the insurance industry is indispensable for maintaining the stability of the entire society.effect.Therefore,it is urgent to study the systemic risks of China's insurance industry and take precautions.This paper first demonstrates the importance of the development of the insurance industry,then measures the systemic risk of the insurance industry,and finally finds out the causes of the systemic risk of the insurance industry in China.Specifically,this paper first uses Va R model to demonstrate the importance of developing insurance industry to economic development,and finds out the relationship between insurance industry and economic development.Based on the characteristics of high concentration of insurance industry in China,this paper selects four inland listed insurance companies as the research object and uses Co Va R model combined with quantile regression method to measure the systemic risk of insurance industry from the perspective of risk spillover to obtain the characteristics of systemic risk in China.Finally,using the measurement results of systemic risk in the insurance industry to further analyze the source of systemic risk in the insurance industry,and according to the characteristics of risk in the industry to provide the focus and theoretical basis for the supervision of systemic risk in the insurance industry.Through empirical evidence,this paper proves that the development of insurance industry will have a positive impact on economic development in the long run,and maintaining the stable development of insurance industry is of great significance to economic development.At present,the development and complexity of the insurance industry make the insurance industry systemic risk increase,the risk spillover effect leads to the risk spread easily in the industry,causing the insurance industry systemic risk,so it is urgent to study and prevent the insurance industry systemic risk.The management and guidance of systemic risk in insurance industry need to be carried out simultaneously from the micro angle and the macro angle.Insurance institutions should pay attention to the control of the micro balance sheet factors that may cause the risk spillover caused by the major crisis,and pay attention to the combination of macro supervision and other economic policies to further guide the insurance industry to play the role of protecting economic growth.