An Empirical Study On The Impact Of Insurance Corporate Governance On Solvency In China

Insurance company is an important member of Chinese financial family,through the way to undertake personal risk transfer,play a role in stabilizing finance and promoting economic growth.Most insurance companies in our country is just beginning,customers and business accumulation is insufficient,the early stage of the development of main tend to do big business scale after get spreads through investment model,with good asset investment targets in recent years more and more scarce,investment return period and sales of insurance products mismatch problem between the period of validity of security is more and more serious.In order to better prevent the risks of the insurance industry,the second generation of solvency regulation system,referred to as"compensation Ⅱ generation",has been officially deployed and implemented in China since 2016.Under the new supervision system,the focus of insurance company supervision is shifted to whether the capital of insurance company is sufficient and whether it can meet the future reimbursement demand of insurance policy.On this basis,the system further defines the measurement caliber of minimum capital and actual capital and other related concepts,which makes the solvency level of insurance companies in China better reflected through the core evaluation index of comprehensive solvency adequacy.The second pillar of the compensation second generation,as the qualitative requirement of the risk management ability of insurance companies,is the primary evaluation of the insurance regulatory department is the foundation and environment module,which is closely related to corporate governance.As the bottom support of the solvency capacity management,the level of corporate governance development affects the solvency adequacy ratio of the company through the solvency risk management ability.This paper selects indicators from the internal governance elements of insurance companies and the governance index of regulatory authorities to conduct an empirical study on the influencing factors of insurance companies’ solvency.By establishing a data model and using the quantitative method of multiple linear regression analysis,the following conclusions are obtained:As a governance index,the score of governance evaluation of insurance companies and the company size represented by net assets have a positive impact on the comprehensive solvency adequacy ratio.There is an inverse effect between the shareholding weight of the largest shareholder and the enterprise’s operating life and the comprehensive solvency adequacy ratio.