The Study On Management Of Life-insurance Solvency In China

Solvency is a paying ability corresponding to the life-insurance company bearing its risks. It reflects a relationship between assets and debts. First of all, the thesis analyses the general factors of solvency in the life-insurance industry, further more, analyses the primary factors in China, especially the risk of interest rate and of bankroll-using. Second of all, comparing with the other methods of solvency management, the Dynamic Financial Analysis (DFA) is testified to be an advanced and valid management tool for solvency, for its consideration on mixed exterior changes' influence, supplies general information, build-up of finance-predicting system for life-insurance company. According to module's composing of DFA, the thesis builds DFA model for life-insurance solvency management in China. The model reviews fluctuation of interest rate and adjustment of assets' structure. Set five scenes of fluctuation of interest rate and four strategies of adjustment of assets' structure, and demonstrate their expecting surplus and losing probability. In spite of ascending and descending of interest rate, losing probability will increase and possibility of insolvency will increase, too. On the other hand, with the proportion of bank deposits fall and of bonds and investing funds advance, expecting surplus increases and losing probability decreases. It is obvious that life-insurance company in China must effectively manage risks of interest rate and bankroll-using. So solvency will enhance.