Comprehensive Risk Management Of Life Insurance Company During The Period Of Transformation

The next10to20years are still a very important period of strategic opportunities forthe development of the insurance. But considering of its periodic characteristics, theexternal environment and its own conditions have change a lot. The economicglobalization has deeply taken place. The mixed management in financial industrybecomes the mainstream. And the financial market is more competitive. We have tochange the style of the development of the industry immediately. The insurance,especially the life insurance, is stepping into depth of the adjustment and contradictionsperiod. The industry probably will develop steady. The lasting extensive development ofthe industry causes abundance contradictions and problems. They are going to burstconcentrate.In the background when the life insurance is stepping into transitional period, thispaper makes a full-side and systematic analyze of the risks we may face. Also probinglybring in and construct the comprehensive risk management framework.Firstly, it analyzes the transformation of the main risk faced by life insurers.Through analyzing the risk characteristics of life insurance companies and life insuranceduring the transitional period, this paper puts forward the transitional period of China’slife insurance companies that will face the risks of the rate of market-oriented reforms,the risks of investment diversification, collectivization and intensive risks and other risksbrought by challenges.Secondly, the paper is going to build the transition to life insurance company’scomprehensive risk management system. Through the analysis of the shortcomings oftraditional risk management model of life insurance companies, this paper argues that tobuild a comprehensive risk management system is imperative, and the premise of theimplementation of a comprehensive risk lies in the comprehensive risk managementorganizational structure and risk management requirements matched. Further more, thepaper proposes to build a comprehensive risk management system of organizationstructure through creating specialized risk management institutions, setting up amulti-level risk management level, clearing division of responsibilities and strengthening the company’s internal information communication and coordination. And according tothe pricing risk, investment risk operational risk and others that the transitional period oflife insurance companies faced. The paper also proposes the corresponding controlmeasures.Finally, the paper puts forward the focus of building a comprehensive riskmanagement system and policy suggestion. This paper puts forward in building acomprehensive risk management system to grasp the relevance of the risk andmacroeconomic volatility, the reform policies impacting industry long-term development,as well as to the comprehensive risk management system for dynamic adjustment, etc. Tobuild a comprehensive life insurance company risk management system are proposed,such as from the construction beneficial to the environment risk management, setscientific comprehensive risk management objectives and strategies, establish riskidentification and early warning mechanism, improve the level of risk control, perfect therisk internal control structure and the establishment of risk management after the eventevaluation and continuous improvement mechanism, etc.