The factors that affect the solvency are insurance risks, the insurance premium rate, the capital, the earnest money, the capital reserve of responsibility, the common reserve funds, the insurance policy coverage fund, the minimum margin of solvency, the insure for fund application and reinsurance and so on .
The new Insurance Law regulates that the pay back ability of insurance business should be supervised and this is instrumental to the protection of interest of policy holders,and also to the healthy development of insurance business.On the side of supervision method,the ability of pay back is stressed,the mechanism of inner incentive and constraint should be established;on the side of macro supervision,we should learn from foreign experiences and improve the supervision system.
Based on a theoretical analysis of the margin of solvency of the non-life insurance industry of China,this article discussed and reasoned the limitations of the margin.With the statistic data of the industry,the margin ratio was recalculated to make up the limitations.
The current minimum solvency margin standard for non-life insurance businesses in China was an outright trans- plantation of the EU 1973 standard.Experiences have shown that this standard has such major deficiencies as basic claim payment limit existing in name only,borderline setting incompatible with China's actual situation,implied assumption of the claims to premium ratio incompatible with China's actual situation,and inadequate representation of the expense risk,etc. This article puts forth improvement...