Research On The Solvency Of China's Listed Property Insurance Companies

With the continuous deepening of international financial reform,in order to meet the needs of the market-based reform of the domestic insurance industry,China's Insurance Regulatory Commission(CIRC)formally launched the risk-oriented solvency regulatory system in 2012.After three years of research and development,the it was officially released in 2015 and entered the transition period of Risk-oriented Solvency System.In early 2016,the CIRC decided that insurance companies only submit the reports of Risk-oriented Solvency System from the first quarter of 2016,and end the transition period of two systems.The replacement of two systems will inevitably have an impact on the solvency of China's property insurance companies.How to optimize business operations is particularly important for them.Based on reading references on the solvency capital requirements and sustainable operation of property companies,first we elaborates on the concept of the loss ratios,solvency,and introduces relevant theories and fundamentals.Then we introduce the establishment and evolution,main contents and regulatory indicators of the two systems,and makes a comparison of the two solvency supervisory indicators.Then,by building a solvency model,we measure the minimum capital of China's listed property insurance companies and measure the actual capital and minimum capital of China's listed property insurance companies in combination with two solvency supervisory indicators,and thus arrive at the solvency adequacy ratio under two indicators.And we analyze the the solvency adequacy ratio of China's listed property insurance companies under two solvency supervisory indicators.In addition,we construct a solvency adequacy ratio model for China's property insurance companies that based on the supervision index of Scale-oriented Solvency System and Risk-oriented Solvency System,and then we forecast the solvency of China's listed property insurance companies in the next six years under the two systems.Comparing them,we can see that under the Risk-oriented Solvency System,most of the listed property insurance companies in China have more solvency in the future than they did in the old one.Finally,based on the previous empirical results,we propose relevant suggestions such as improving the risk management organization system,control combined ratio of property company,optimize the structure of assetliability of property Insurance company,and make the mechanism of information disclosure more perfect.