"Paying for the second generation" is not simply to increase the insurance reserve, but to reduce the insurance reserve. There was a big misunderstanding when the second generation of salary was first published. I heard many reactions from the industry. I think that "the second generation of salary" is nothing more than asking everyone to increase capital, and all enterprises should increase capital. Because of your poor risk control and insufficient reserve, the original solvency was 150% and suddenly increased to 100%, so the business of that enterprise turned red, so there are many legends.
However, we must objectively see that the introduction and implementation of the "second generation compensation" will increase more enterprises, because it is not used to control risks or measure it. Therefore, by docking its indicators one by one, you will find problems and its score will be low. If it is low, there will be insufficient solvency. Therefore, we need to increase reserves and improve solvency. If risk control is better and scores are higher in all aspects, its solvency adequacy ratio will increase, not by increasing reserves, but by increasing solvency adequacy ratio.
For example, it used to be 150, but now it is evaluated that the risk control is very good, and the solvency is improved to 200. Therefore, the characteristic of "paying for the second generation" is to control risks, and to evaluate whether the business activities of insurance companies or enterprises are within the safe and controllable risk range from the perspective of risks.
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Content introduction
While adopting the internationally accepted three-pillar framework, China Compensator II fully embodies the characteristics of China's emerging insurance market in many aspects, such as risk stratification theory, three-pillar logical correlation, asset-liability evaluation framework, life insurance contract liability evaluation, risk management requirements and evaluation (SARMRA), comprehensive risk rating (IRR), market restraint mechanism, etc., and has China's original contribution. The results of several rounds of quantitative tests show that China's compensation for the second generation is a scientific supervision system and has achieved the scheduled construction goals.
With the deepening of China's opening-up and market-oriented reform and the implementation of the second generation compensation, China's insurance market will be more open and efficient, which will have a positive impact on the sustainable development of the global insurance market and the construction of international insurance regulatory rules.