Research on the Regulatory Accounting Framework for Insurer Solvency

Author: Chen Xinyuan, Zhu Hongjun
Publisher:
Publish Date: 2006-11-01
Features: The regulation of insurance solvency is positioned to measure and prevent various risks that insurance companies face in their operations. Therefore, analyzing the types and composition of risks is of great significance to solvency regulation. This book combines the current development status of China's insurance industry with existing research on risk models for insurance companies internationally, proposing principles that should guide the establishment of risk models for insurance companies in China. Based on these principles, a risk type model for insurance companies based on the balance sheet is established, categorizing the risks of insurance companies into investment risk, credit risk, insurance risk, asset-liability matching risk, and governance risk. To prevent and resolve these risks, insurance companies and regulatory authorities must adopt multiple measures, including establishing scientific investment portfolios, prudent provision of liability reserves, reinsurance, general reserves, and solvency capital regulation.