The second aspect was lighted by accounting's impact and influence on actuary, which is streamlined by actuarial practice: price, liability evaluation, solvency management and the analysis of profit source.
This thesis analyzes the risk factors that influence the solvency ability of insurance companies, reviews the popular instruments of solvency management and makes a methodological study on the Dynamic Financial Analysis method which is a new instrument for insurance risk management.
Second of all, comparing with the other methods of solvency management, the Dynamic Financial Analysis (DFA) is testified to be an advanced and valid management tool for solvency, for its consideration on mixed exterior changes' influence, supplies general information, build-up of finance-predicting system for life-insurance company.
From two important aspects of insurance company's solvency management, the author expounds in details the application and its value of DFA in Capital Management, Asset Liabilities Management, and Reinsurance Planning. The author also puts forward his own viewpoint, which DFA can help national insurance industry construct valid forewarning system against financial risk, and can cooperate with current solvency regulation ratio system too.
On the basis of elaboration on the basic concepts of solvency, factors that influence solvency and solvency management, according to the ratio system promulgated by China Insurance Regulatory Commission, this dissertation selects 9 financial ratios with the data of China's main insurance companies and adopts factor analysis and the statistic software of SPSS to illustrate the solvency of China's main insurance companies. Factor analysis shows that the main factors influencing solvency are insurance scale and profitability, assets structure and composite cost rate.