A Prediction-Oriented Analysis of Solvency Adequacy in Property Insurance Companies under China’s C-ROSS II Framework

DOI

10.2991/978-94-6239-701-9_89How to use a DOI?

Keywords

Solvency Adequacy; Panel Data Analysis; C-ROSS II

Abstract

Under the risk-oriented regulatory framework, solvency adequacy has become a core indicator of the financial stability of insurance companies. Using panel data of Chinese property insurance companies from 2017 to 2024, this paper empirically examines the determinants of solvency adequacy under the implementation of the C-ROSS II regulatory regime. A fixed-effects panel model is employed to control for unobserved firm heterogeneity and time-invariant characteristics. The results show that underwriting profitability and investment returns significantly enhance solvency adequacy, while higher loss ratios exert a negative effect. Excessive reliance on reinsurance may weaken capital accumulation and constrain solvency levels. In addition, changes in the regulatory framework, captured by a regulatory dummy variable, have a significant impact on insurers’ solvency positions. These findings highlight the joint role of firm-level operations, asset allocation, and regulatory constraints in shaping solvency adequacy, and provide empirical evidence for understanding insurers’ capital management under the evolving regulatory environment.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Jingcheng Zhao
PY  - 2026
DA  - 2026/07/30
TI  - A Prediction-Oriented Analysis of Solvency Adequacy in Property Insurance Companies under China’s C-ROSS II Framework
BT  - Proceedings of the 2026 11th International Conference on Social Sciences and Economic Development (ICSSED 2026)
PB  - Atlantis Press
SP  - 862
EP  - 872
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-701-9_89
DO  - 10.2991/978-94-6239-701-9_89
ID  - Zhao2026
ER  -