Life Insurance Company Solvency Risk Analysis and Management

Author: Ye Zhaohui
Publisher:
Publish Date: 2006-12-01
Features: Solvency of life insurance companies refers to the ability of insurance companies to fulfill their contractual obligations at any time. For insurance companies, solvency risk is the ultimate adverse financial consequences resulting from asset risk, underwriting risk, interest rate risk, and other operational risks. Under the basic framework of risk management theory and in combination with the operational characteristics of life insurance companies, this book analyzes the risk status of solvency in Chinese life insurance companies from the perspective of financial risk management, and discusses management measures from both internal and external perspectives of life insurance companies. The main content is divided into four parts: ① Analyzes the internal and external factors affecting the solvency of life insurance companies and discusses the mechanism of action of key risk factors; ② Classifies solvency assessment methods and employs the capital adequacy assessment method to conduct an empirical analysis of the solvency status of life insurance companies operating in the Chinese market from 2001 to 2002. The results show that the Chinese life insurance industry faces a crisis of insufficient solvency; ③ Explores internal management measures for solvency risk in life insurance companies from multiple perspectives, including liabilities, asset management, asset-liability interaction, capital, and risk management systems; ④ Discusses the direct or indirect management of solvency implemented by external stakeholders such as the government, credit rating agencies, and competitors.