On December 30, 2021, Bank Of China Limited(601988) Insurance Regulatory Commission issued the regulatory rules on the solvency of insurance companies (II) (i.e. the second generation of compensation phase II), which will be officially implemented from the first quarter of 2022. After four years of soliciting opinions and quantitative tests, the new regulations of phase II of the second generation of compensation were finally implemented. The new regulations have comprehensively optimized and upgraded the solvency regulatory rules. The future earnings of new insurance policies are grouped and the limit is included in the core capital, and the risk factor is generally increased. Taking the bond issuing insurance enterprises in the market as a sample, China integrity international calculates and analyzes the solvency indicators under the rule switching. It is expected that the solvency adequacy ratio of the industry will generally decline in the short term, The capital supplement demand of insurance enterprises may increase; In the long run, the new regulations will force insurance companies to fully return to insurance protection, adhere to long-term high-value business and value investment, strengthen corporate governance and risk management, and promote the transformation and upgrading of the industry.
Key words: second generation second phase capital hierarchical penetration measurement corporate governance
