With the development of the insurance industry in China, the requirement for fund and the pressure of solvency increase greatly for life insurance companies. This article mainly resolves round the solvency evaluation system of these companies under the background of the second generation of China solvency regulation system. The article adopts Literature research, Factor analysis and other methods to arrive at a conclusion by comparing and analyzing the data of companies in 2016. This article is divided into five parts: the first part introduces the China solvency regulation. and its influence on life insurance companies in China. Then, the second part elaborates objects and methods chosen in this research. The next part selects the indexes influencing solvency based on the analysis of data from 10 life insurance companies in 2016, such as loss ratio, life insurance reserve ratio and so on, and then derives the solvency evaluation system for life insurance companies by Factor analysis. The forth part compares the solvency of comprehensive and professional life insurance companies and summarizes the risks influencing the solvency using this system. The last part puts forward different policy recommendations to improve the solvency for the two types of life insurance companies.
