Analysis And Precaution Measures On Solvency Risks Of State-owned Life Insurance Companies

The insurance industry in China has been experiencing the rapid development, with the improvement of Chinese economic system. Since the period of Chinese 10^th five-year plan, the annual average growth rate of insurance industry has reached 25%,and that of life insurance industry has been over 30%.Therefore, the insurance industry has become the important part of the national economy development in China. However, the solvency of life insurance companies is encountering great challenge, due to their extensive operation model, limited channels of using capital and loss from difference of interest rate. As to the state-owned life insurance companies taking the great market share, it is practical to analyze the solvency risks and put forward the measurement on risk precaution.In the paper, the state-owned life insurance companies taking the great market share are the research object. By using the combinative research method of theory analysis and demonstration, I analyze the reasons of forming solvency risks in the state-owned life insurance companies. I design the index system reflecting solvency in the paper.The conclusion is drawn at the end of the paper, that is, the solvency of state-owned life insurance companies in China is improving, with a series of measurement such as the more investment channels, reconstruction and stock issuing. However, during their operation and development, the state-owned life insurance companies in China will face up with other solvency risks, which should be prevented and controlled. Finally the paper presents the corresponding measurements aiming at the forming reasons for the solvency risks. The insurance supervision departments should strengthen the solvency supervision and improve the related policies and regulations, to provide good macro environment for the development of life insurance companies; At the same time, in the internal life insurance company risks should be prevented by preventing interest rate fluctuation, improving investment management measurement, enhancing operation and management level and so on.