October 15, in another Group subsidiary to the land of insurance capital of 2,100,000,000 yuan has been receiving full, this land of insurance solvency adequacy ratio of over 100%, to monitor the basic requirements; earth has insurance OCI Will be submitted by 5 provinces and cities in non-auto insurance applications to resume their business in order to restore solvency as a result of lack of business was suspended.
According to the China Insurance Regulatory Commission estimates that as of the first half of 2008, less than the national solvency of the insurance companies a total of 12, most of the land has not so fortunate, can quickly increase to make up for lack of solvency.
Insurance solvency because of the tight operating indicators did not improve this year, Insurance companies generally will face tight solvency adequacy ratio. At present, there are many Insurance companies are planning to increase shareholder issues.
In 2007 the land of insurance premium income 100 billion yuan, an increase of 60% over the same period last year, but due to the rapid business development, capital strength less than the contradictions have become increasingly prominent. According to an authoritative source of insurance sector, capital is the lack of insurance led to the rapid development of the land appeared in stage solvent enough root cause of the problem. Due to its shareholders in the capital and pricing methods ran into difficulties at one time planned to increase drag near stagnation.
As a result of the land prior to the solvency of insurance adequacy ratio of less than 100%, the China Insurance Regulatory Commission ordered to suspend operation, including Shanghai and other provinces and cities in 5 non-auto insurance business.
Ping An Insurance and the actual capital 3,397,000,000 yuan in the first half, down nearly 15 billion solvency adequacy ratio from December 31, 2007 fell to 181.6 percent of the 111.8 percent, or 150% of the companies adequate II Ranks.
Ping An Insurance solvency adequacy ratio fell to 70 percent of the reason comes down to investment income by the capital market fluctuations. Ping An has issued a notice Yukui three quarters, in the third quarter of Fortis shares for investment impairment accounting treatment, the net assets to reflect about the changes in the market value of 15.7 billion loss into a profit report reflected. With the holders of Fortis Ping An Group's share price continued to fall, this book a loss of the amount of overseas investment is likely to continue to expand.
It is reported that the solvency adequacy ratio is reflected in a comprehensive risk insurance, subjective and objective internal and external factors will affect the solvency adequacy ratio. Last year, the external capital markets, good earnings, the insurance companies to cover up internal risk control deficiencies, and this year these problems are a direct role in the solvency of insurance companies.
Strict supervision of solvency
China Insurance Regulatory Commission said the relevant departments, insurance companies solvency, that is the situation of the company capital adequacy, subject to many factors, mainly can be divided into two types: one is external factors, mainly in capital to shareholders, to issue Subordinated Debt capital market volatility, macroeconomic regulation and other factors; the other internal factors, mainly operating strategy, the distribution sector, business growth, business quality, in-house risk management mechanisms, investment income, the level of cost control, and so on .
Solvency of insurance companies related to the vital interests of the majority of the insured, the China Insurance Regulatory Commission is monitoring the work of the core content. According to the September 1 start of the implementation of the "management of insurance company solvency requirements", according to the China Insurance Regulatory Commission solvency of insurance companies will be divided into three categories, to monitor implementation of the classification: solvency adequacy ratio below 100% of the insurance company for less than Types of insurance; solvency adequacy ratio at 100% to 150% of insurance companies, as well I companies; solvency adequacy ratio higher than 150 percent of the Class II adequate for the company. Insurance companies should have their operational risks and adapt to the size of the capital to ensure solvency adequacy ratio not less than 100%.
According to the relevant provisions of the China Insurance Regulatory Commission, the insurance company solvency if less than 100%, the China Insurance Regulatory Commission to take regulatory measures 9 categories, including the order to increase capital or restrictions on dividends to shareholders, restrictions on directors, senior management pay levels And in-service level of consumption, restrictions on the size of the business, responsible for the adjustment of the management and staff to take over, and so on.
Is to increase life-saving straw
A Chinese-funded Insurance company official, Insurance companies do not regulate the long-term competitiveness, leading to decline in the quality of the underwriting business, pay increases year after year pressure, especially around the beginning of the year in a row suffered major disaster, making various Insurance companies have paid a substantial rate rise Direct insurance business dragged down by profit. In the first half of PICC Property Insurance, Pacific Insurance insurance, Ping An Insurance of the three companies combined ratio rose 8.8 percentage points, 11 percentage points and 8.5 percentage points the rate of one after another breakthrough in the comprehensive cost of 100%.
As the insurance company in-house risk control ability of a short period of time can not be improved, so the only way to solve the solvency problem is to increase shareholders, or to find a new strategic investors. Insurance is one of the earth's lucky, with another powerful group of shareholders in full support of all the 3.0 billion increase in place, the solvency adequacy ratio will exceed 250%. However, a large number of small and medium-sized insurance companies, investment Kuogu the request of shareholders will face critical questions.
According to informed sources, in the near future, some small and medium-sized Insurance company solvency adequacy ratio to resolve the issue held a shareholders meeting. Meeting, a number of insurance companies on behalf of shareholders, capital requirements frequently argued that "the growth of the insurance companies do not increase, but growth should increase soon."
Experts point out that the expansion of capital is now Insurance companies in tackling the solvency of the life-saving straw, or else will face strict regulatory control measures are in place. However, the increase was the Insurance Company to continue rapid expansion mode, the cost of business, payment rates and do not fall down, the final will once again face the question of solvency. It is clear that the Insurance Company through an urgent need to adjust their business structure to enhance the quality of the business, etc., from the capital Kuogu rely on a single channel to address the plight of solvency.
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