A Study On Early-Warning To Risk Of Property Insurance Company Based On ERM Theory

Gathering and transferring or distributing risk is the way how property and casualty insurance companies earn their profit. Therefore, the core competitiveness of property and casualty insurance companies is always the ability of risk management. As part of risk management system, ERM-based early-warning system has significant meaning.This paper is about the property and casualty insurance company’s ERM-based early-warning system. Systematically it analyzes the risk situation faced by the property and casualty insurance companies. And it also analyzes their risk types, risk characteristics and causes of risk. Focusing on how property insurance companies against the risk and resolve risks under the COSO-ERM framework, it builds an effective ERM-based early-warning system.The paper makes meaningful recommendations to the property and casualty insurance companies based on risk analysis. Suggest the insurance companies appropriately increasing their operational capacity, solvency and asset management capabilities. And recommended that logically allocate limited management resources on premiums, reserves and the cost to achieve ERM-based early-warning and earn best utility of risk management and control.Building an ERM-based early-warning system, it selects property and casualty insurance company based on the current international popular ERM concept and acceptable to society. The basic structure is accordance with "define objects-identify risk factors-Design Indicator System-establishing an early-warning model ". First, it collects and deals with the data from the questionnaire survey and financial statement data of the property and casualty insurance company. Secondly, it uses deviation method, component analysis principal and fuzzy comprehensively evaluation method to evaluate its risk one by one, and tests those results by statistically significant. Finally, we obtained an effective ERM-based early-warning indicator system which helped property and casualty insurance company dealing with risks.