Theoretical Study And Empirical Analysis Of Life Insurance Reserve Evaluation Under C-ROSS

January 2016, China's Insurance Regulatory Commission announced the official implementation of the “insurance company solvency regulatory rules(No. 1- No. 17)” China's insurance company solvency regulation has entered a new chapter. In this 17 documents, and “the third document: Assessment of Insurance Liabilities” fully explain the assessment methodology of solvency reserves under the China risk oriented solvency system.The author first reviews the historical progress of China's insurance company solvency regulation, briefly describes the C-ROSS and the main advantages of the new method about the life insurance unearned reserves, and compare it with the old one. Second, the author selects an endowment insurance product and a life insurance product for empirical analysis, and then analyzes the effect of C-ross reserve on those two products. And it comes to several conclusions, including the assessment assumptions which are more realistic and so on. In the end of this article, the author believes that the C-ROSS reserve assessment methods have several advantages and problems which include in the following: the lower TVOG factor assumptions, the dividend payments calculated on the basis of legal reserve, and the discount rate and other assumptions need to be test in the future. In the future, these issues need to be judged and tested in practice. A perfect China risk oriented solvency system will make a big influence in our insurance industry and financial market.