Abstract: If we divide China’s P&C insurers into four segments by annual premium income and capital structure, there exists huge difference between the four segments, which will bring extraordinary challenges to regulators in setting industrial police and regulatory standards. We study the premium risk difference among the four segments, then try to set out solvency capital requirement for china’s P&C industry with layer decreasing methods. by dividing earned premium into three layers:[0,2billion],[2 billion,10billion],[above 10 billion], we give our recommended solvency capital requirement of the three layers:30%,22%,15%.