| Summary: | 碩士 === 國立臺灣大學 === 商學系 === 84 === In order to facilitate the abilities of insurance regulator and
insurer management to detect the possibility of insurer in-
solvency, we apply U.S. Life Insurance Risk-Based Capital
System to Taiwan's life insurers. We list the correspondent
items and risk factors used in U.S. Life RBC formula to
calculate the RBC indices of the year of 1993 of the 14 Taiwan'
s life insurers. Furthermore, we adopt the cash flow scenario
simulation approach which was developed by Daykin(1985, 1987)
to simulate the insol- vency risk taken by these companies.
Finally, we use revised Spearman rank correlation to test the
relationship between RBC index and insolvency risk. From this
research, the conclusions we found are as follows:1)In the
scenario of net worth ratio assumed at 7%, we found that the
correlation coefficient between RBC index and insolvency risk
is -1. 2)The net worth of early estab- lished life insurers is
relatively lower than that of newly ones, and the overall
operating risk of the former is relatively higher compared to
that of the latter. 3)On the most severe net worth ratio
scenario, the insolvency risk of newly established life in-
surers is approximately zero. This result indicates that the
existing minimum capital requirement of NT$2,000,000,000 is ir-
rational. 4)According to this study, Kuo Hua Life is a highly
risky insurer. On the stand of insurance regulator, it should
be alert in scrutinizing its operation. 5)The establishment of
sound insurance accounting system and insurance statistics
database is crucial to smooth the regulator's operations and
raise insurers' overall performances in the future. 6)To
rationalize the regulation execution toward Taiwan Branches of
U.S. life insurers, regulator should encourage them to be
financially independent companies to evaluate their risk
capital requirements and operating risks.
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