The Financial Stability Index of the Early-Warning System for Taiwan’s Life Insurers

Abstract

本研究利用1997至2012年臺灣壽險公司財務數據，將其轉換成衡量公司財務穩定度之指標（Financial Stability Index, FSI），並以不同分量為基準進行財務狀況預警模擬。實證結果發現，利用中位數衡量之風險調整後FSI，對公司財務惡化狀況有較佳預測能力。而公司規模、商品組合變動、資本適足率制度實施、與是否接受信用評等，對公司財務穩定度有顯著正向影響。

We propose a new measure of the financial stability index (FSI) for the early warning system, while applying different quantiles analyses of the financial conditions of life insurers in Taiwan. Instead of the mean-based method in the previous literature, we use the median-based approach to select the FSI. Moreover, we adjust and make the index the risk-adjusted FSI, thereby enhancing the index`s ability to provide an early warning. Furthermore, firm size, changes in product portfolios, the risk-based capital (RBC) system`s implementation, and whether or not the insurer is credit-rated each have a significantly positive effect on the insurer`s financial stability.