| After the financial crisis in 2008 exposed the fragility of the global financial system,governments and financial institutions in various countries were calling for greater regulation of banks.However,large insurance groups such as American International Group(AIG)were on the verge of bankruptcy and received huge assistance from the state during the crisis,which changed people’s traditional view that the insurance industry would not cause systemic risks.International financial organizations such as the International Association of Insurance Supervisors,the Financial Stability Committee and the Geneva Association jointly believe that the supervision of systemic risks in the insurance industry should be strengthened.Systemically important insurance institutions refer to insurance institutions that play an irreplaceable role in the whole insurance industry and assume key functions.They not only have huge business,but also have close links with other financial organizations.It has a high probability of serious impact and negative impact on the external economic market.By 2022,China’s original premium income has reached 4.7 trillion yuan,total assets 27.15 trillion yuan,and the accumulated balance of fund utilization has reached 25.05 trillion yuan.One of the important reasons for the rapid development of China’s insurance industry is the gradual improvement of the level of mixed development between the insurance industry and other industries.At the same time,the business and development of the insurance industry are increasingly diversified.Insurance institutions are increasingly closely connected with other financial institutions and even with other industries through non-traditional insurance business.At present,many insurance institutions are engaged in high-risk investment business in order to obtain investment income,which increases the relevance and complexity of the insurance industry and other industries,and increases the possibility of occurrence and spread of systemic risk.Based on the evaluation index system of the International Association of Insurance Supervisors(IAIS),this paper comprehensively combs the domestic and foreign literature on systematic risk assessment and supervision of the insurance industry,combines the experience of international insurance regulatory evaluation,and according to the current economic situation of China and the actual changes in insurance policy,develops an evaluation index system that conforms to the actual development trend of China’s insurance industry,and re-selects and determines the weight of the index,Put forward the regulatory policy in line with the development of China’s insurance industry,with a view to providing a certain reference for the efficient supervision of regulatory agencies.The paper is divided into five parts:The first chapter is the introduction.This part mainly describes the research background and significance,literature review,research content,research methods,and possible innovations and deficiencies of this paper.The second chapter is the current situation analysis.The changes in systemic importance within China’s insurance industry include:(1)scale: rapid development of premium scale and continuous expansion of industry scale;(2)Relevance:Investment business is complex,business areas are intertwined,and industry relevance is enhanced;(3)Complexity: The innovation of insurance business forms has increased,the complexity of business management has increased,and risks have rapidly accumulated.The article provides a detailed explanation of the importance of China’s insurance industry from the above three aspects.The third chapter is the relevant theories.This section mainly introduces the definition of systemic risk and systemically important insurance institutions,the reasons for generating systemic risk,and the evaluation and identification methods of systemically important insurance institutions.It analyzes the impact mechanism of insurance technology on systemic risk.The fourth chapter is the regulatory practice.Systematically reviewing and comparing the regulatory practices of systemically important insurance institutions both domestically and internationally,providing theoretical reference for the establishment of an evaluation system and empirical analysis of systemically important insurance institutions in China’s insurance industry in the following text.At the same time,a comparative analysis of data on important indicators of global systemically important insurance institutions is conducted to draw inspiration for the evaluation practice of systemically important insurance institutions in China.The fifth chapter is the empirical research.Based on the previous research,this chapter provides a reasonable design and selection of secondary indicators under the five categories of primary indicators: scale,complexity,relevance,substitutability,and insurance technology.The CRITIC entropy weight method was used to calculate the weight of evaluation indicators,and the TOPSIS method was used to evaluate each sub indicator.The scores were analyzed from multiple perspectives,and the impact of sub indicators on systemic risk was studied.Systemic important insurance institutions in China were identified,and the impact of insurance technology development on systemic important insurance institutions was analyzed,and the influencing factors of systemic risk were explored.The sixth chapter is the research conclusion,Policy Suggestions,and Prospects.Based on the qualitative and quantitative analysis mentioned above,the conclusion of the article is to propose policy recommendations for pre,during,and post supervision as well as insurance technology,and to propose corresponding prospects for insurance technology and systemic risk research.The conclusions of this paper are as follows:(1)In terms of the identification of systemically important insurance institutions,Ping An Insurance Group was identified as systemically important insurance institutions,and the People’s Insurance Group of China and China Life Insurance Group were identified as potential systemically important insurance institutions.Most of the systemic risks in China’s insurance industry were concentrated in these two types of institutions.Therefore,insurance groups with possible systemic risks should be supervised more strictly,while non-systemically important institutions also need regular supervision to prevent them from turning into potential systemically important insurance institutions.(2)In terms of influencing factors of systemic risk,this paper believes that the important influencing factors that trigger systemic risk include the scale of insurance institutions,the level of reinsurance business,the intensity of financing activities,the intensity of investment activities,the level and complexity of non-insurance business.(3)In terms of the impact of insurance technology on systemic risk,this paper believes that insurance technology improves the overall risk of the insurance industry through its impact on relevance and complexity.At the same time,the application of insurance technology has an inverted U-shaped impact on systemic risk.Insurance institutions with a low degree of application of insurance technology will increase the systemic risk of the insurance industry with the improvement of the application of insurance technology.However,when the application of insurance technology reaches a higher level,insurance institutions can apply insurance technology to achieve better management,and the systemic risk will decrease with the application of insurance technology.The innovation of this paper is as follows:(1)The overall framework for the identification and evaluation of systemically important insurance institutions in China has been established.(2)Most of the existing studies use objective evaluation methods such as principal component analysis and AHP to evaluate D-SII.On the basis of the existing research results,this paper uses CRITIC-Entropy Weight-TOPSIS model to reasonably weight the indicators and evaluate the systematic importance of insurance groups.Finally,according to the results of the analysis,we put forward policy recommendations on the identification of systemically important insurance institutions in China’s regulatory institutions and the efficient supervision of insurance technology. |
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