| Company with the pace which China internationalise accelerate, more and more international and domestic risks need to be dealed with by life insurance companies. Therefore, objectively speaking, life insurance companies should built a more scientific and effective risk management mechanism to improve the risk management capacity. In the same time, Enterprise management risk continues to increase as a result of extensive long-term operation. Some Chinese life insurance companies have flawed governance structure, non-effective internal risk management mechanisms, and adopt short-term behavior prominently.So builting a theoretic model to assess the life insurance company risk mangement ability and applying it into practice is the focus of present work. This paper focuses on the life insurance companies risk management capacity using the COSO internal control theory. Since the defect of fuzzy evaluation model, this paper analyzes life-insurance company risk management capability proceeding with COSO internal-control theory which concludes five elements: environment control, risk assessment, activity control, information & communicate and surveillance. Based on this, reasonable rules for evaluation and assessment are established, as well as AHP is used to determine the weight of evaluation index. Finally, this paper selects a life-insurance company, which can represent China life-insurance companies'average risk management capability, for case study in order to find main reasons that deduce to poor management capacity. Those are: (1)Inadequate corporate governance structure; (2)lack of internal audit work. Due to limited length, this paper focuses on the xx life-insurance company's internal audit, also recommends that life-insurance companies should implement risk-based internal audit philosophy, construct databases to support enterprise risk management decision-making. |
