| In July 2106,The Foresea Life Insurance spent 8 billion for Vanke and became a real estate mogul Vanke’s second-largest shareholder.In fact,recent years,some medium and small-sized life insurance companies use the capital from universal insurance to buy stock ownerships of companies.Universal life insurances and investment-linked products are more popular for consumers who want to have investment incomes.Life insurance companies release universal life insurance and investment-linked products for large scale.On the contrary,the traditional life insurance products will naturally out of favor.New investment life insurance products rapid development momentum has caused the attention of the The China Insurance Regulatory Commission.Excessive development one innovative insurance products may bring serious solvency risk,thereby affecting the health of the insurance company and the insurance industry as a whole.In the first quarter of 2016,Second Generation of Solvency Regulatory and Supervisory System of China has already put into effect.CIRC chairman Xiang Junbo repeatedly warned that the most important function of insurance company is stability security.All insurance companies should correctly grasp the positioning and development direction of the insurance industry.The China Insurance Regulatory Commission also punishes the insurance companies who violate the provisions of the product distribution and investment.This paper studies if the new type of investment life insurance products such as universal insurance products and investment link insurance products can affect the solvency level of life insurance companies.Is it conducive to the solvency of life insurance companies?Will it be possible to meet the regulatory requirements for the solvency of the new rules?First,This paper uses the theoretical analysis to introduce the impact of the investment-type life insurance products on the solvecy of life insurance company.And then,this paper uses factor analysis to get composite scores which represent the ability of company’s solvency.Next,using the results coming from factor analysis as the explained variable,using the investment-type life insurance product indicators as explanatory variable as well as the participating life insurance product indicators and traditional life insurance product indicators as reference variables.The study concludes:First,the larger the investment-type life insurance products are,the more these are detrimental to the solvency of life insurance companies;Second,the participating life insurance products also help to improve the solvency of the company;Third,traditional life insurance products do not appear the significant effect on solvency of life insurance companies.Last,this paper puts forward some suggestions in order to promote the development of investment-type life insurance products and optimize life insurance companies’ solvency. |
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