The impact on the solvency in non-life insurance industry in China: Based on the investment assets management

Based on the model of weighted nonparametric estimation, the paper is concerned with the impacts of the different investment assets on the solvency of non-life insurance companies in China. Two results are obtained: First, either stock or time deposit investment has a positive impact on the solvency. All other things being equal, the solvency will be increased if investment assets are expanded, yet the risks also increase. Second, different investment assets have different impacts. The impact of stock investment is greater than that of time deposit investment. When developing the second generation of solvency regulatory system, the insurance regulators should take into account the different effects of different assets, and improve the calculation method of admissible assets.