A Research On The Market Efficiency And Solvency

With the setting-up and improvement of China's market economy system,the insurance industry is developing at the same time.The insurance industry as a "stabilizer"of the society and a "booster" of the economy,with "stability" and "boost" two functions.In terms of the "stability",the ability to measure the "stability" of insurance companies is solvency;in terms of the "boost",the measure of the insurance company's "boost"function is the market efficiency.In recent years there are many listed companies lined up to apply for a license of insurance companies,which is contrary to its stable function.In this case,the China Insurance Regulatory Commission to improve the access threshold for some of the insurance companies in the industry has increased supervision.This is a challenge to the solvency of property insurance companies.With the depression of China's economic,property insurance companies have to face a market efficiency problem.Solvency is a basic words not defined clearly,the International Association of Insurance Supervisors(IAIS)define solvency as:"at any time,the insurance company can meet all contractual obligations(liabilities)ability".In January 2016,China officially launched the second generation of China's solvency regulatory system(referred to as the"C-ROSS"),this text uses the method of hypothesis testing to test the data from 21 Chinese property insurance company from 2013 to 2015,it is believed that the solvency situation and the stability of the property insurance companies in our country have reached the standard under the current supervision system.On the premise of the relative perfect solvency,there are some problems in the market efficiency of property insurance companies.This paper uses the DEA method to test the data from 21 property insurance companies from 2013 to 2015,that there exists the scale problem in the large-scale property insurance company,and there are some problems in management efficiency in the small-scale property insurance company and in the use of insurance funds to improve the rate of return in foreign property insurance companies.Finally,based on the analysis,some suggestions are put forward for different stakeholders.