| After the2008financial crisis, the concept of systemically important financialinstitutions has been known gradually. In traditional ideas, insurability of insurancebusiness, insurance events occur randomly, large number law and the inverse ofproduct life cycle can make its investment and liquidity management effective, therebyshielding the financial risk, but the American International Group’s (AIG) failure gaveregulators a wake-up call, highlight the importance and necessity of identification andsupervision of systemically important insurers in China.This paper starts from the systemic importance, mainly study the identification ofsystemically important insurers in China. Based on G-SIIs identification method issuedby the International Association of Insurance Supervisors, referring to the recognitionand supervision experience for G-SIBs of the FSB, BCBS and the academic community,combined with the basic situation of insurance industry development in our country, thispaper selects the Index Method to identify the systemically important insurers in Chinaand establishes a multi-level evaluation system which includes5major categories (Size,Global activity, Non-traditional insurance and Non-insurance activities andInterconnectedness)of indicators and11sub indicators. On this basis, choosing the18insurers in our country as sample, using their2013annual reports as data sources andselecting the corresponding financial indicators, finally calculate the system importancescore with subjective weighting method and the objective entropy method. Two kinds ofcalculation results show that the PINGAN Insurance Company of China, China Life,China Pacific Insurance Group, People’s Insurance Company of China are systemicallyimportant Insurers in China, and the score of PINGAN Insurance Company Of China isway ahead, in addition, the calculation results of entropy method shows that Xinhuainsurance and Taikang Life are also systemically important insurers. It is noteworthythat due to the high scores of NTNI activities, little-known Ecitic-Prudential ranking hasexceeded our other insurance agencies better, this confirms that the NTNI activities isthe key factor in the evaluating of systemically important insurers.Through the overall analysis and research, fully reflects the problem that thedisclosure of our insurance industry information is not standard and not perfect, inorder to identify our systemically important insurers effectively,we should speed up the establishment of the sound evaluation system and the insurance industryrisk monitoring database.At the same time, the CIRC should monitor the systemicallyimportant insurers in following aspects: the differential regulation, clear supervisioncontents, risk control mechanism and effective processing mechanism and so on,providing good economic and financial environment to ensure our insurance develophealthily and rapidly. |
