The Insurance Company Solvency Study
|School||Southwestern University of Finance and Economics|
|Keywords||Solvency Minimum solvency margin Reserves of non - life insurance business Asset and Liability Management Capital adequacy|
The solvency of insurance companies is the insurance company's ability to fulfill the insurance contract, compensation or benefit obligation. Special enterprise as a business risk, insurance companies have different characteristics and general corporate. Insurance rights and obligations of both sides asymmetry in time, so, if the insurance company insolvency or even bankruptcy, most of the insurance contract has not yet expired, the insured will lose insurance coverage, causing economic losses, and thus the entire economy normal operation and social stability of the destructive effects have a huge impact, so the insurance company solvency of countries regarded as the core content of government regulation. Sichuan Insurance Regulatory Bureau of the author belongs to the basic units of the regulatory authorities, although not directly the regulatory institutional solvency of insurance companies, but still want the solvency of the insurance company branches, a certain degree of awareness and understanding, so I chose \solvency regulation of insurance companies investigate the \This paper is divided into five parts. The first part is an introduction, the main frame structure set forth the background and significance of this study, the literature review, the theoretical basis of the insurance regulatory and articles. The late start of China's insurance regulatory means and methods is still relatively backward, as the core solvency regulation is the initial set up, corporate governance and market conduct regulation for the content of the regulatory system. The main draw of the EU's regulatory system of solvency regulation in this chapter highlights the EU's regulatory content and technical innovation. The second part is the international comparison of solvency regulation. Introduces the main features of the United States, European Union and Japan on solvency regulation, and the same three countries and regions and differences were compared, and finally the main features of solvency regulation and development direction. China's insurance industry is in a period of rapid development of the national insurance industry progress intensify market liberalization to promote the establishment and improvement of the current regulatory system must be built on top of the overall development since the reform and opening up, China's insurance industry, and strive to rich in forward-looking. Impossible to copy a ready answer from abroad, only consider our business and financial condition of insurance companies, while making reference to some mature foreign experience, in order to gradually establish a regulatory framework for system suitable for the level of development and national conditions of China's insurance industry. The third part of the focus of a non-life insurance company solvency regulation. In China, the legal requirements for property insurance and life insurance business to separate operation, insurance companies generally divided into non-life insurance companies and life insurance companies. The main factors affect the solvency of the non-life insurance companies have a statutory capital of insurance guarantee fund, insurance bond, insurance liability reserve, minimum solvency margin. Minimum solvency margin and non-life insurance business reserve two main factors in this chapter. The minimum solvency margin capital requirements for insurance regulators of the insurance company to continue as a going concern. This paper compares China and the European Union as well as the provisions of the Utah 12 minimum solvency margin (2003), and calculated in accordance with the provisions of the two regions. Comparison of the calculated results, it is found that the our low minimum solvency margin requirements. The non-life insurance business reserve amount of funds needed to fulfill the outstanding liabilities of the non-life insurance business, insurance companies mainly include unearned premium reserves, provision for outstanding claims and other liability reserves. This paper compares the December 31, 2003 the largest reserves and the proportion of premium income of the three companies, analyze the impact of of reserve extraction of solvency. The fourth part of the life insurance company solvency regulatory focus. Life insurance companies, economic entities operating unique risk the the continuing solvency is a prerequisite for its continued operation and development, it is directly related to a company's survival. A lot of factors that affect the solvency of the life insurance companies, the paper focuses on the asset and liability management and capital adequacy of these two factors. The assets and liabilities of the life insurance companies are special, and how to ensure that life insurance companies to maintain adequate solvency in the long-term business, to ensure that sufficient assets to match liabilities in the future, is the key to the life insurance company to continue as a going concern. The solvency margin for life insurance companies and life insurance companies, the economic content of the generalized capital adequacy of regulatory consistency, insurance regulators regulatory solvency margin for life insurance companies is also reflected on the life insurance company's capital. This chapter introduces the solvency of static tests and dynamic tests, static tests currently used in China. Part V of recommendations for improving the regulation of insurance company solvency. The biggest risk of the insurance industry solvency risk, strengthen solvency regulation is to ensure the stable operation and development of the insurance company market, and to protect the interests of policy holders lies. China's insurance regulatory body as the core focus of the insurance regulatory solvency regulation. Solvency regulatory system in China is basically developed on the current framework of the European Union, so my one hand vigorously to learn the theory and practice of the EU the solvency regulatory reform of the other hand, we should clearly see that the EU system is not suitable for China's actual needs place chosen to learn from the advanced experience of the United States, Japan and other countries, monitoring the road to create a set for the development of China's insurance industry. First, we must resolve the contradictory relationship between solvency and reserve assessment; promote the insurance industry to establish and improve their internal risk management systems, especially asset-liability management system; Third, to promote the reform and improvement of the system of insurance accounting; fourth to pro-market forces to enhance the ability of insurance companies assess and prevent risks. The main contribution of this paper is to introduce the theories and methods of general international solvency regulation, and with our regulatory approach compared by some simple calculations put forward suggestions to improve our solvency regulation, part of the theory for future research foundation. Due to the adoption of new accounting standards accounting of insurance companies in 2007, the data of this article or subject to accounting under the old accounting standards, does not involve the alternation of the old and new accounting standards. Solvency is not only associated with the insurance company's financial accounting, more closely related with the insurance company's actuarial techniques, but this article only from a financial point of solvency regulation analysis also can not study actuarial knowledge of solvency, this article just an attempt, there are many inadequacies, hope to be improved in the future study and work.