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CBIRC: Supervision and escalation of insurance solvency



Recently, the CBIRC issued the 2017 annual insurance solvency supervision work. It is reported that 2017 solvency sufficient stability, industry risk overall controllable. But a handful of companies represented by the Andhra Pradesh Insurance Group Co., Ltd. are at risk. In 2017, there were 7 companies with a comprehensive solvency adequacy ratio of 100% to 150% of the region of concern.

Some companies ' operational risk, strategic risk, reputation risk and liquidity risk are running high, and the risk comprehensive rating is in the continuous descent stage.

     In the 2017, the insurance solvency supervisory work mainly includes:
     (a) To strengthen the risk judgment and control through the core of solvency supervision;
     (ii) Deeply promote the second generation of full landing implementation;
     (iii) Continuous improvement of the solvency monitoring system;
  (iv) actively carry out the second generation of international exchanges and cooperation. 

At the end of 2017, the comprehensive solvency ratio of 169 insurance companies was 251%, and the core solvency ratio was 240%, which was significantly higher than the 100% and 50% standard line. With an actual capital of $3.3 trillion, an increase of $439 billion from the beginning of the year, a minimum capital of $1.3 trillion, an increase of $207.5 billion from the beginning of the year, and a combined solvency increase of 2 trillion yuan over the beginning of this year. 

2017 is the second year of the formal implementation of the second generation. Since the second generation has been implemented, the solvency index has run smoothly. From the industry comprehensive solvency ratio indicators, the 1th quarter of 2016 to 2017 1th quarter, the index from 277% to 255%, the average decline of 5.5% per quarter, the original CIRC "1+4" series of documents issued, 2017 2nd quarter to 4th quarter, the index down to 251% from 255% , an average of 1.4% per cent a quarter, with a significantly narrower drop.

The 2017 risk assessment results show that the proportion of companies in category A gradually increased, from the 1th quarter of the 55% to the 4th quarter of the 63%;b company's share of the decline, from the 1th quarter of 42% to the 4th quarter of the 35%;c and D companies from the 1th quarter 5 down to the 4th quarter of 3.

The CBIRC said that in 2018, I will take Xi Jinping's new era of Chinese characteristics of the socialist thought as a guideline, the full implementation of the party's 19, Central Economic Work Conference, the National Financial working Conference and the Central Financial Committee of the first meeting of the spirit of stability, and strict supervision, to do a good job in First, the banking industry and the insurance industry to resolve the financial risks of battle.

2018 is the first year to fight three years, to focus on the elimination of disease, do a good job in the company's risk management, to combat illegal violations, to curb the prominence of risk points, to prevent monomer risk and local risks superimposed spread. Second, vigorously promote the second generation of second-stage project construction. In accordance with the "start at the same time, emergency first, three years of completion," the overall idea, at the same time to start the second generation of Phase II project construction projects. For important and urgent projects priority promotion, mature one, release one, implement one.

2018, the efforts to promote the "insurance company solvency Management provisions" and other amendments, the completion of the plan to complete the regulation of the 6, sound implementation mechanism of 2 projects, thematic research projects 3. Third, continuously strengthen the solvency risk analysis and monitoring.

Research and establish multidimensional, three-dimensional solvency risk analysis and monitoring system, upgrade the second generation of regulatory information system, improve the data collection, calibration and analysis module, and continuously improve the industry solvency, risk analysis of quality and efficiency, and continuously enhance the ability to identify, monitor, prevent and defuse risks. Four is to further perfect the second generation of the implementation mechanism. The completion of the Solvency data Authenticity Check, the inspection of the problems found, increase the investigation and enforcement of fraud companies to take stringent measures. To integrate regulatory resources and establish a normalized system for checking the authenticity of solvency data.

Continuously promote solvency risk management requirements and assessment (SARMRA) and Integrated Risk Rating (IRR) work. Five is to continue to actively promote the second generation of international exchanges and cooperation. Deepen the equivalent assessment work with Hong Kong, and promote the equivalent evaluation of the solvency Ⅱ of the second generation in China. The 2018 Asia solvency regulatory and Cooperation Workshop was held to strengthen international cooperation in solvency regulation. Continue to actively participate in the international insurance regulatory rules, contribute to China's wisdom and China program.