Study On Risk Management Model Of Property Insurance Company In China

Being one of the main research subjects in insurance theory, risk management model has become an important analysis tool for property insurance company in risk management though identificating risk, analyzing risk and measuring risk. This paper, based on Enterprise Risk Mannament Theory and system theory, builds an overall risk management model, Enterprise Risk Management Model (ERM-Model).First, under recognition of risk, it is redefined based on the explanation of its elements, nature and character.and Enterprise Risk Management Theory. The connotation of Enterprise Risk Mannament Theory is exploited, and the ERM-Model based on system theory is presented. The author develops a general framework for ERM-Model and its components: parametric hypothesis module, business-environment risk module, business-process risk module and outcome report module.Second, as the key point of the paper, exploration is conducted on the design and simulation of economic-environment risk module and operating risk module. Through stochastic differential equations, regression analysis and distribution fitting, models are built for interest rate risk, inflation risk, other business-environment risk, underwriting risk, investment risk, catastrophe risk, and reinsurance risk.Third, outcome report module is built. Combining risk modules and cash flow, simulating financial statement is acquired. The supervision targets of CIRC are extended to a financial index evaluation system and an innovating research is given in simulation of fair value of insurance company, which forms a better target evaluation system.In the end, following example study, the paper demonstrates ERM-Model's value throuth risk analysis and stress testing.