Analysis Of Insurance Company's Solvency Regulation System In China

The insurance industry has developed quickly in China sinee1980, But there are some problems in the process of development such as blindly pursuing market share and expanding the scale of premium. Our country's insurance industry has accumulated a great deal of risk, which may cause insolvency of the insurance company. Insolvency is especially important for the normal operation. Once the insolvency crisis happens, the insurance companies may not be able to pay for the insured, and even worse, the whole country's economy and the society's stability may be influenced. For the rapid development of insurance market in our country, it is urgent for both the government and the enterprise to build up insolvency system which combines external supervision and internal control. So, as one of the most important parts of regulations for insurers, the solvency of insurers has been well concerned as the crucial factor for the development of the insurance company. However, without uniform standard and process, the regulations vary from different areas. Solvencyâ…¡aims to set up an uniform standard like the Basel Accord for the solvency regulation for the insurers in EC. Meanwhile, Solvencyâ…¡update the methodology of risk management for the insurers, embedding the risk management concept into the whole enterprise management. This article analyzes the influence brought out by the Solvencyâ…¡draft, and gives some advices under the comparison between Solvencyâ…¡and the current system of solvency regulation in our country.The main part of this article is divided into four sections:1st part introduce the importance of solvency regulation for the insurance;2nd part gives you a view of the development of the solvency regulation in China;3rd part is the core of this thesis, which introduce and compare the solvency regulation system in both EU and USA;4th part is the last, which gives my opinions how to improved the solvency regulation in our country.