Research Of China Life Insurance Company's Internal Solvency Risk Based On Copula Model

At present,China has become the second largest economy in the world,and the income of our people has been increasing,especially the new type of coronavirus spreading around the world,which has caused more people to pay attention to their own health problems.Therefore,the role of the insurance industry is gradually being used by people.Recognize that the insurance industry has begun a blowout development.However,along with the growth of premium income,there is also the issue of internal risks of insurance companies,especially the uncertainty and diversity of internal integration risks.China Life Insurance Co.,Ltd.'s internal solvency is at the core of its risk management.Only China Life Insurance Corporation can reasonably measure its internal solvency risk to protect future insured claims and maturity payments.If the insured company does not Sufficient ability to pay,the insured will fall into a crisis of survival.When many insureds claim at the same time at a specific time,if the insurance company does not anticipate these risks in advance,the internal solvency will be seriously insufficient and the insurance application will be lost.Some effects will lead to a decline in the credibility of the insurance company,followed by operational difficulties.In serious cases,it will lead to bankruptcy or acquisition by other companies,endangering social stability.China Life's solvency adequacy ratio increased from525% since its listing in 2007 to 269.09% in the third quarter of 2009.During this period,it experienced a process of decline before rising and then decreasing.The surrender rate also went from 6% in 2007 to 1.67% in the third quarter of 2019,which has roughly experienced several fluctuation periods in between,and there are many fluctuation factors that affect the internal solvency adequacy ratio of life insurance companies,mainly due to the growing investment scale of life insurance companies and various internal business of the company Factors such as the growth of investment,the increase in the size of investment assets,the supervision of the CBRC,and several major reforms of the insurance industry.This article studies the internal solvency risk of life insurance companies based on the Copula function.At the same time,China Life Insurance Co.,Ltd.is used as an example to analyze the influencing factors and measurement of its solvency.This paper selects the underwriting risk based on the surrender rate and the solvency The capacity adequacy ratio is the capital adequacy risk of the indicator.The Monte Carlo simulation method is used to find the Va R based on the Copula function.Finally,the Va R obtained using the traditional method is compared with the Va R obtained using the Copula function.Overestimate the shortcomings of internal solvency risk,and finally give relevant suggestions for improvement of China Life Insurance Company in order to improve its solvency level.At the level of the newly issued asset management regulations,China's supervision of the insurance industry has become increasingly strict.Therefore,regardless of its theoretical significance or practical value,the research in this paper has guiding significance for China Life Insurance Company Limited's internal solvency risk control.