The financial risks of insurance companies mainly include cash liquidity risk, accounting risk, cost control risk and asset-liability matching risk.
First, analyze the current situation of insurance financial risk management in China.
(A) lack of standardization of accounting operations
At present, insurance companies mainly collect premiums first, but generally speaking, the interval between them is relatively long, which is prone to uneven distribution of various benefits in the accounting process. In various insurance companies, accounting personnel are generally appointed by the head office to the branches, and the selection of these appointed personnel is still decided by the branches. Moreover, the various treatments and benefits of the appointed personnel are decided by the branch, which leads to a sharp decline in the professional ability of accounting personnel. At the same time, for accountants, insurance companies also require them to have certain expected ability, and in the actual operation process, the subjectivity of accountants will be greatly enhanced, which will easily lead insurance companies to obtain some untrue financial information. In addition, due to the lack of consistency in the professional quality of accountants, there will be greater arbitrariness in the process of dealing with financial work, and the judgments made are also prone to errors, which will have a serious impact on the financial risk management of the insurance industry.
(B) unreasonable use of funds
In the financial risk management of insurance industry, the general capital risk mainly refers to the lack of rationality in the allocation and application of insurance funds, which makes it lack of effective value-added utilization. Under normal circumstances, the capital risk is manifested in four aspects: First, in the operation process of China's insurance industry, there are still defects such as short investment period, single variety and scarce tools, which leads to the disharmony of assets and liabilities. Second, the implementation of the underwriting system is not rigorous enough, and it is prone to reverse underwriting and accommodation claims. Third, insurance funds are used in a single way and with narrow channels, and are generally used for securities trading and bank deposits. Fourth, insurance companies generally manage insurance funds through centralized management. However, in some branches, due to frequent multi-head account opening and scattered funds, this has a very serious impact on capital turnover, and it will also lead to a substantial increase in the company's operating costs and management costs, thus affecting its economic business.
(C) Insufficient deposit reserve
Generally, in the process of purchasing insurance, the insurer needs to pay a certain premium first. If the insurance contract comes into effect, the insurance company can pay a certain amount of insurance money to the insurer in case of property loss or personal accident. Therefore, after the insurer pays a certain premium, the insurance company will prepare a certain deposit in order to ensure that it has enough compensation funds to deal with unexpected accidents. However, at present, insurance companies still lack sufficient reserves in the course of operation, which has a great impact on the repayment of insurance companies, and they also lack a deeper understanding of the financial situation when customers surrender their insurance.
(D) There are defects in the supervision mechanism and internal control
At present, in the process of analyzing the financial situation of insurance companies, it is usually carried out through relevant statements and reports provided by the financial department. These materials include the losses and profits of insurance companies, so as to help managers and regulatory authorities of the company know the financial situation of the company in time and make plans to solve existing problems in time. However, in order to avoid punishment or falsify business performance, some insurance companies will hide their financial reports, which has a very serious impact on the financial risk management of insurance companies. In addition, because most insurance companies have established certain supervision systems, which hinder the circulation of information to a certain extent, which is very unfavorable for effectively playing the role of financial risk management, so there are still many loopholes in management.
Two, China's insurance industry financial risk management improvement measures
(A) standardize accounting operations
The development of financial risk management in insurance industry is mainly based on accounting, and the work of financial risk management is mainly to supervise the quality of accounting information. Therefore, in the process of perfecting financial risk management, insurance companies must strengthen the standardization of accounting operations, and at the same time strengthen the regular or irregular education and training of financial personnel to continuously improve their professional quality and management level. At the same time, financial personnel should have a strong sense of risk management and law. In the process of managing and counting data, it is necessary to strictly follow the relevant legal procedures. In addition, the financial department needs to strictly control the company's debt ratio in order to better balance the company's debt ratio and cash flow.
(2) Strengthening the management of capital operation.
At present, there is still a lack of rationality in the use of funds in China's insurance industry. Insurance companies must strengthen the management of working funds and strictly control the risk of funds. Generally, a special department can be set up to make capital investment decisions, and at the same time, professionals can be arranged to form investment decision-making groups to make decisions on investment projects and asset allocation of insurance companies. In this process, it is necessary to clarify the post authority of the staff, and in the process of fund operation, it is necessary to separate management from management, effectively reduce the risk of funds and ensure the safe operation of funds. In addition, it is necessary to implement the fund custody mechanism. For both parties, the legal relationship must be clear and definite, and they should write to each other to operate funds, so as to achieve the purpose of improving financial risk management.
(C) improve the financial supervision system
In the process of perfecting financial risk management, we should strengthen the construction of management system to ensure that insurance companies can effectively and reasonably prevent and avoid various financial risks in the course of operation. Insurance companies should establish certain accounting workflow and financial supervision system through relevant laws and regulations, combined with their own development and operation, and constantly improve and perfect them. In the process of strengthening financial risk management, insurance companies also need financial authorities to strengthen the management of the financial situation of the head office and branches. Once problems are found in the management process, effective measures must be taken in time to deal with them, so as to effectively avoid financial risks and achieve the purpose of improving the level of financial risk management.
(D) to strengthen internal control
In the process of financial risk management, internal control refers to a risk management mechanism that restricts and connects with each other. Strengthening internal control can ensure the effective reduction of financial risks, thus achieving the purpose of strengthening financial management. In the process of evaluating its own financial situation, insurance companies must truthfully reflect the losses and gains in the company's operating process to the financial report, and accurately evaluate its solvency, thus effectively reducing financial risks and ensuring the stability of the company's operation. At the same time, it is necessary to strengthen internal audit and standardize accounting work. You can also organize some experts to predict and evaluate financial risks, provide some reference suggestions for financial risk management, and avoid more financial risks.
(E) Strengthen the construction of management information.
With the rapid development of network technology and computer technology, insurance companies need to constantly popularize and use computers in the process of financial risk management, constantly strengthen the construction of financial management system, and comprehensively manage budget execution, preparation and assessment, which can not only reduce labor costs, but also improve the efficiency of financial risk management. Therefore, in the process of improving financial risk management, it is of great significance to strengthen the construction of information management mode.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.