Research On Financial Risk Management Of Insurance Companies

In recent years,financial risk cases have run through all aspects of business operations.Generally speaking,financial risk management is the use of a series of management methods for timely processing and advance control when risks occur or are about to occur in corporate finance.The key links that must be mastered in the production and operation process are closely related to the survival and development of the enterprise.Since the reform and opening up,with the continuous advancement of China's socialist market economy,controlling financial risks of enterprises has gradually become a key link that must be paid attention to for the healthy development of enterprises,and the requirements for risk control of corporate financial management have become increasingly strict.Compared with the banking and securities industries,insurance companies are very different.As a financial industry that manages risks,the intensification of market competition and changes in the operating environment have made it difficult for the insurance industry to operate.In addition,the insurance industry is a special industry that pools risks and operating risks.Different from the general industry,the insurance industry mainly focuses on absorbing risks.This feature determines that preventing risks is the top priority of the insurance industry.Therefore,only by doing good risk management can we be invincible in the fierce market competition.This article starts with financial management risks,and takes China Life Insurance Company as an example to describe the current status of China Life Insurance Company's financial risks through real data analysis.Through analysis,it is found that China Life Insurance Company currently lacks financial risk management talents,imperfect early warning mechanism,and inadequate internal control system.In order to accurately analyze the financial risks of Chinese life insurance companies,this article uses the form of interviews and discussions with senior financial managers within the company to determine the weights of different indicators.Based on the overall ranking results,the financial risks of Chinese life insurance companies are determined.The current situation is evaluated and analyzed.The empirical analysis ofthe financial risk score of China Life Insurance Company is "moderately urgent".In the end,this article will focus on establishing a risk management system for financial management of property insurance companies in China,applying theory to practice,and providing solutions to its financial risk management problems based on the problems and scoring results of China Life Insurance Company.