On Influential Factors for the Sustainable Management of Property Insurance Companies: A Sparsity Oriented Importance Learning Approach

On Influential Factors for the Sustainable Management of Property Insurance Companies: A Sparsity Oriented Importance Learning Approach

China Risk Oriented Solvency System was formally implemented in 2016, putting forward new capital regulation standards and requirements for insurance companies’sustainable management. The solvency level of the insurance companies can comprehensively reflect their sustainable development ability. Based on the panel data of 75 property insurance companies in China from 2016 to 2020, this paper analyzes solvency influential factors under the framework of model averaging and sparsity oriented importance learning to identify the factors affecting property insurance companies' risks. The analysis is conducted to identify the important factors affecting the sustainable management of property insurance companies and the degree of their influence, so as to provide a decision basis for improving the solvency level of insurance companies and enhancing the sustainable development of the insurance industry.