The Solvency And The Supervision Of Solvency In Insurance Enterprises

The insurance industry has developed quickly in China since 1980, when it recovered in our country. But there are some problems in the process of development such as blindly pursuing market share and expanding the scale of insurance premium. Our country's insurance industry has accumulated a great deal of risk, which causes great hidden trouble of insolvency. Insolvency is especially important for an insurance company's healthily operating, once insolvency crisis happens, the insurance companies can't keep going favorably, and even worse, the whole country's economy and the society's stability may be deadly destroyed. For the speedily development of insurance market in our country, it is urgent both for the government and the enterprises to build up an insolvency management system which combines external supervision and internal controlling.The main part of this article is divided into five sections: the first section introduces characteristics of the management of insurance companies, and the importance of insolvency, through the introduction, you may find the joint between the insurance and accounting, which laid a good foundation for the following statement; the second section analyzes the factors that influence the insolvency in the present economic environment in our country; the third part uses the available dates from the " Insurance Yearbook of China" and also regards the factors which influence the solvency to analyzed the satiation of the insurance solvency in China; the fourth section first discusses the concepts and the necessity of the government supervision for solvency, then, in the basis of introducing the western countries' supervision experience, I discussed the satiation of our country's solvency supervision and the index system; the last section stands on the board of internal control, by analyzing the index system, I tried to find ways to improve the insurance companies' solvency satiation.