Systematic Risk Assessment And Prevention Research Of Insurance Institutions

In the context of China's current financial deleveraging and economic downturn,the party and state leaders have repeatedly proposed the bottom line of “preventing systemic risks” on different occasions.Therefore,how to prevent systemic risks has become a hot issue of public concern.This paper focuses on the systemic risks of insurance institutions.China Ping An Insurance Group,as the only insurance institution in China that has been selected as a “global systemically important insurance institution” and a “domestic systemically important insurance institution”,has strong research typicality.In terms of content,the article firstly studies the systemic risk and now elaborates the theoretical basis,and puts forward the definition of the systemic risk of the insurance institution.Then,the research case is introduced,and the safety insurance has been briefly analyzed.Sub-systemic risk events.Finally,based on the current economic environment background,qualitative and quantitative methods are used to analyze the systemic risk status of Ping An Insurance.Focus on the systemic risk sources of Ping An Group and the contagion mechanism of systemic risks,and establish a CoVaR model to digitize its systemic risks and obtain corresponding research results.In terms of qualitative methods,the article analyzes the systemic risk sources of Ping An Insurance from both external and internal environments.Among them,external factors mainly include economic cycle risks,policy and regulatory risks,financial market risks,and investor(public)confidence.The internal factors mainly include underwriting business risk,investment business risk and financial risk.Then the paper expounds the systemic risk contagion mechanism of Ping An Insurance from four aspects.In terms of quantitative methods,the article selects the weekly closing price from January 6,2012 to December 28,2018 as sample data,and evaluates the systemic risk by CoVaR model.The results show that Ping An's contribution to the systemic risk of the financial system The degree is-2.4341,the systemic risk contribution rate is 33.60%,ranking first among the four listed insurance institutions.Then,it puts forward corresponding prevention suggestions for the systematic risks of Ping An,reduces the possibility of systemic risks,and further guarantees the stable and healthy development of China's financial system.