Abstract: This paper makes researches on the permitted ruin probability of the China Insurance Regulatory Commission towards P&C insurance industry.Based on the current regulation rules of the Chinese insurance industry and released data,Copula method and Quasi Monte Carlo simulation are applied to estimate the permitted ruin probability.The estimaed probabliity is 1.28%.This value can serve as a benchmark for the China solvency regulation reform.Furthermore,the relationship between the policy coefficients and the permitted ruin probability is analyzed by simulated samples.

Key words: solvency margin, permitted ruin probability, simulation, copula function