Risk Management Analysis Report By China Life Insurance Companies

The concept of Enterprise Risk Management develops from risk management, CurrentlyEnterprise Risk Management Theory has been widely adopted by the large financial insurancegroups in developed countries, which is of great significance in improving business value andabilities of preventing and handling risks. The report of company’s risk management has beenadded at the company’s annual report since2010, which reveals all the risks and thecorresponding measures during the process.Compared to the2012annual report of information on comparative analysis of riskmanagement released in2013by56life insurance companies, the thesis discloses thesituation from the perspectives of the overall risk assessment and risk control of managementof insurance companies. According to the thesis, based on shareholders, life insurancecompanies will be classified into Chinese and foreign insurance companies, bank-affiliatedlife insurance companies and non-bank-affiliated insurance companies. Comprehensiveunderstanding of market risk, insurance risk, credit risk, liquidity risk, operational risk,strategic risk, reputation risk and seven categories of risks and comparing the risks oforganizational framework for life insurance companies help us to understand the insurancecompany’s risk management information, find issues a comprehensive risk managementsystem faces，and make suggestions to facilitate more public disclosure of informationrequired in future and to standardize disclosure of information.In this thesis, with detailed quantitative analysis of risk management information insample companies, currently there are several issues in a comprehensive risk management oflife insurance companies. First, poor comprehensive risk identification. Some companies onlyrecognize three or four of seven risks，and the division of each risk is not clear and accurate.Second, the low risk identification in quantity. In the disclosure of risk limits and overallrisks，information users in the company cannot get an accurate understanding of risk. Third,on one hand, models used during the process of measuring risk are not enough or advanced. On the other hand, the model assumptions are not unified，causing little comparison betweencompanies. Four, the construction of organizational framework in comprehensive riskmanagement is not perfect, which is the problem faced by small and medium sized insurancecompanies...