An insurance company shall have capital commensurate with its risks and business scale, and ensure the solvency adequacy ratio is not less than 100%. Solvency adequacy ratio, that is, capital adequacy ratio, refers to the ratio of actual capital to minimum capital of an insurance company. The minimum capital of an insurance company refers to the amount of capital that an insurance company should have in accordance with the provisions of the China Insurance Regulatory Commission in order to cope with the adverse effects of asset risks, underwriting risks and other risks on its solvency. The actual capital of an insurance company refers to the difference between authorized assets and authorized liabilities. Recognized assets are assets confirmed by insurance companies in accordance with the provisions of the China Insurance Regulatory Commission when assessing their solvency.
According to the solvency status of insurance companies, the China Insurance Regulatory Commission classifies insurance companies into the following three categories and implements classified supervision: (1) An insufficient company refers to an insurance company with a solvency adequacy ratio of less than 65,438+0,000%; (2) Adequate Class I companies refer to insurance companies with solvency adequacy ratio between 100% and 150%; (3) Sufficient Class II companies refer to insurance companies with solvency adequacy ratio higher than 150%. China CIRC will not take the dynamic solvency test results of insurance companies as the basis for implementing regulatory measures.
China CIRC's handling of insurance companies with insufficient solvency.
For companies with insufficient capital, the China Insurance Regulatory Commission will take one or more of the following regulatory measures according to different situations: (1) order to increase capital or limit dividends to shareholders;
(2) Limiting the salary level and on-the-job consumption level of directors and senior managers;
(3) Restricting commercial advertisements;
(4) Restricting the establishment of branches, limiting business scope, ordering to stop developing new business, ordering to transfer insurance business or ordering to handle subcontracting business;
(5) Ordering the auction of assets or restricting the purchase of fixed assets;
(6) restricting the use of funds;
(seven) adjust the person in charge and related management personnel;
(8) taking over;
(9) Other regulatory measures deemed necessary by China CIRC.
Solvency is very important for the healthy operation of insurance companies. Once the solvency crisis occurs, not only will the insurance company be unable to maintain its normal operation, but the interests of the insured or the insured will be threatened or damaged, and it may also have a great destructive effect on the normal operation of the national economy and social stability. The solvency supervision of insurance companies has become an important goal and the core content of national supervision of the insurance industry.
According to the national insurance law, no insurance company is allowed to close down, only allowed to be acquired by the same industry, and the insured insurance contract will continue to be performed by the acquirer.
On March 20th this year, China Insurance Regulatory Commission (CIRC) issued Supervision Letter No.5 (20 14). At the end of the fourth quarter of 20 13, the actual capital of Xintai Life Insurance was-14.75 million yuan, the minimum capital was 793 million yuan, and the solvency adequacy ratio was-185.96%, which was a company with insufficient solvency. According to relevant regulations, CIRC ordered Xintai Life Insurance to stop developing new business from March 20 14 17.
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