The China Risk-Oriented Solvency System: A Comparative Assessment with Other Risk-Based Supervisory Frameworks
| Autor: | Derrick W. H. Fung, Jason J. H. Yeh, Ai Ju Shao, David Jou |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Economics and Econometrics
Solvency 050208 finance Actuarial science business.industry 05 social sciences Accounting General Business Management and Accounting Conceptual framework Capital (economics) 0502 economics and business media_common.cataloged_instance 050207 economics European union business China Insurance industry Finance Risk management Strengths and weaknesses media_common |
| Zdroj: | The Geneva Papers on Risk and Insurance - Issues and Practice. 43:16-36 |
| ISSN: | 1468-0440 1018-5895 |
| DOI: | 10.1057/s41288-017-0046-3 |
| Popis: | The China Risk-Oriented Solvency System (C-ROSS), the new risk-oriented regulatory framework for the Chinese insurance industry, was fully implemented at the beginning of 2016. In this paper, we identify the main features of the C-ROSS and compare its rules and standards with those of the Risk-Based Capital (RBC) system in the United States, the Solvency II system in the European Union, and the Swiss Solvency Test (SST) in Switzerland. Using a conceptual framework proposed by Cummins et al. (J Insur Regul 11:427–447, 1994) and Holzmuller (Geneva Pap Risk Insur 34:56–77, 2009), we analyse C-ROSS according to 11 criteria and find that the system scores are substantially better than those of RBC, and more or less as good as those of the Solvency II or SST systems. We also contrast the strengths and weaknesses of C-ROSS with those of the RBC, Solvency II and SST systems. Our analyses are of value to regulators developing risk-based supervisory frameworks, and to insurers engaging in business in any of the four geographic regions considered. |
| Databáze: | OpenAIRE |
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