Risk Management of Life Insurance Companies in China

As professional financial institutions that collect and disperse risks, insurance companies not only assume and transform the risks of the insured but also prevent and resolve themselves’ risks. So, risk management is particularly important for insurance companies. The concept of Enterprise Risk Management develops from risk management. Currently, ERM theory has been widely adopted by the large financial insurance companies in developed countries, which is of great significance in improving business value and abilities to prevent and handling risks. This paper is trying to figure out the current situation of China’s Life insurance companies, by comparative analysing the risk management information of 2018 annual report released by ten life insurance companies. Comprehensive understanding the market risk, insurance risk, credit risk, liquidity risk, operational risk, strategic risk and reputational risk of those companies. Through the research, it is found that there are many problems in the risk management of sample companies. In terms of both quantitative research and qualitative analysis, they are quite different from insurance companies in developed countries. China’s insurance industry should strengthen their risk management ability as soon as possible. In addition, according to the problems found, the paper finally puts forward specific suggestions, hoping to help the risk management of life insurance companies in China