In this paper, we use the factor analysis model, and get the prediction function of the solvency of insurance companies. In order to verify the feasibility of the model, we have adopted Accumulated Local Effects Plot. It is proved that the solvency of an insurance company is positively correlated with its monetary funds, term deposits and owner's equity, negatively related to its own liabilities, and that the two indicators of monetary capital and insurance company liabilities are factors that have a high marginal contribution to predicting the solvency of insurance companies.

Haoqing Zhang. Research on solvency measurement and prediction-based on the analysis of financial indicators of insurance companies. Academic Journal of Business & Management (2021) Vol. 3, Issue 9: 20-23. https://doi.org/10.25236/AJBM.2021.030905.

[1] Goel Anubha, Mehra Aparna. A bivariate Markov modulated intensity model: applications to insurance and credit risk modelling [J]. Stochastics, 2021, 93(4).

[2] Hample Kelsey C.Foral insurance for the informally insured: Experimental evidence from Kenya [J]. World Development Perspectives, 2021, 22.

[3] Lu Yang, Li Yongli. A novel data-driven method for maintenance prioritization of circuit breakers based on the ranking SVM [J].International Journal of Electrical Power and Energy Systems, 2021, 129.

[4] Zhang Lei. Stock Market Trend Analysis and Prediction Research Based on Support Vector Machine [D]. Nanjing University of Posts and Telecommunications, 2020.