Discussion On The Risk Control Of "Solvency" Of Insurance Companies

The importance of the insurance industry to national economy is self-evident.With the vigorous development of social economy and people’s awareness of insurance,the demand for insurance has become more and more prosperous.From 2008 to 2017,Insurance premium scale of our country has doubled 34 times in less than ten years,and the growth rate has been soaring.The number of property insurance companies has also continued to increase.In 1949,China established the first Chinese People’s Insurance Company.By 2017,there were 71 property insurance companies registered and operated in China,including Chinese and foreign property insurance companies.For insurance companies,solvency is the lifeline,the premise and guarantee of the insurance industry’s healthy and sustainable development,and also the fundamental to protect the interests of the insurant.Adequate solvency ability can promote the insurance company to improve the efficiency of the use of funds,strengthen the management of assets and liabilities,and encourage insurance companies to strengthen risk management much more actively,which can forming a virtuous circle.Meanwhile,risk control has gradually become the main point of corporate and emerged in the financial industry.For insurance companies,solvency risk control is the core of risk control.As a professional financial institution that collects and disperses risks,insurance enterprises must bear and transform the risks of the insured,and they should also prevent and solve their own risks,it becomes more difficult for insurance enterprises to manage risks.At present,the insurance industry in various countries has established a relatively complete solvency risk control system,and has achieved great results.In China,the CIRC has issued the Guidelines on Risk Management of Insurance Companies(for Trial Implementation)and Regulations on the Administration of the Capacity of Insurance Companies to Repayment and Supervision Indicators,and Rules for the Preparation of Reports on the Capacity of Insurance Companies to Repayment.The importance of solvency risk management is also highlighted by the aim of promoting domestic insurance companies to establish a complete solvency risk management organization system and procedural management methods.It can be said that insurance companies to strengthen solvency risk management is an inevitable requirement with the development of the times,and it is also a necessary condition for promoting the sustainable and healthy development of enterprises.In recent years,due to the country’s macroeconomic development,the slow growth of new cars and the reform of vehicle insurance rates.Although China’s property insurance market,especially the car insurance market has been growing,the competition in the property insurance market is fierce increasingly.However,the number of insurance companies is continue to increase dramatically,and the risks caused by disorderly competition for the share of the insurance market have become increasingly prominent,which has seriously affected the solvenc capacity of overallproperty insurance companies and has brought a huge negative impact on the entire financial industry and social stability.On the other hand,there are still many insurance companies despise risk management internally,or pursue economic indicators such as premium income and profits unilaterally,or understand risk control on the surface,they do risk management only to meet regulatory needs.It is extremely detrimental to the long-term health of the company.Therefore,the risk management of solvency is an extremely important topic for financial insurance companies.The quality of solvency risk management and the level of risk control on financial insurance companies directly affect the survival and development of financial insurance companies themselves.Next it affects the insurant,that is,the consumer’s interests and the stability of the entire society finally.This paper combines theoretical practice with case analysis.This paper introduces the concept of insurance company and its solvency ability,the risk of insurance company’s solvency,the content structure of risk control,and the implementation mechanism of risk control.At the same time,this paper takes Jiangxi Branch of Ping An Property Insurance Company(here in after referred as Jiangxi Pingan)as the research object,and analyzes the current status of Jiangxi Pingan’s solvency ability and its risk management level of solvency ability.The five problems of goal setting,control environment,control system,operation process and supervision mechanism in the risk control of solvency ability in Jiangxi Pingan were found.The reasons behind these problems have been deeply explored,namely,strategic contempt for solvency risk control,lack of awareness and training on risk control,uneven quality of employees,narrow coverage of risk control information,insufficient internal and external supervision of solvency risk.Therefore,from the actual point of view,combining the risk control experience of outstanding enterprises at home and abroad,this paper puts forward a series of suggestions on the problems existing in Jiangxi Pingan’s risk control of solvency.Details are as follows : Firstly,establish effective solvency risk control goals.Secondly,create a good solvency risk control environment.Thirdly,establish a scientific solvency risk management mechanism.Forthly,construct of a scientific solvency risk control operation process.Finally,give full play to the role of internal and external supervision.Hope these measures can help Jiangxi Pingan to improve its own business level,improve its solvency ability,and promote the company developing sustainly and stablely.