Study On Development Of China's Small And Medium Sized Life Insurance Companies

With the reform and opening up and development of market economy, China's life insurance industry experienced a rapid development process, particularly in the past decade, China's life insurance industry is undergoing remarkable changes, on the one hand, new life insurance products, with diversified types and functions meet the needs of protection of the residents in a wider scope, on the other hand, life insurance industry itself has also experienced rapid growth, the scale of life insurance premium income and assets have a substantial increase in the total size,the number of life insurance companies has significantly increased, and competition is more intense in life insurance industry. In this process, few older life insurance companies have growed and developed to hold a key role in the industry, at the same time, a large number of small life insurance companies have gradually emerged.As individuals, the competitiveness and influence of any small life insurance company are still very limited currently, but as a whole, the existing and future more small and medium sized life insurance companies are with market power that should not be ignored. China's current life insurance market is in a dynamic evolutionary process, the large life insurance companies'internal operations are almost stable after more than 10 years'development, but the small and medium sized life insurance companies, whether as individuals or as a whole, are in a start-up and development stage, their development will have an important impact on market structure of China's life insurance industry in the future:on the one hand, over time, some small and medium sized life insurance companies will likely grow into large companies with an important market power; on the other hand, as a whole, small and medium sized life insurance companies in the future will have a greater impact on market structure, while the market behavior of small and medium sized life insurance companies also will impact more in-depth on the whole Chinese life insurance industry. Therefore, the small and medium sized life insurance companies will become an important factor in the dynamic process of evolution of China's life insurance industry. Based on this judge, this paper drawed on domestic and foreign research, used theories and methods of economic and management, studied the growth and performance of small and medium sized life insurance companies in China.The main research contents and results are as follows: First, the analysis of development of China's small and medium sized life insurance companies. In the third chapter, after the review of the appearance and development of our country's small and medium life insurance companies,we firstly analyzed the SWOT of small and medium sized life insurance company, then do comparative analysis of small and medium sized life insurance companies on some operating indicators in reference to large enterprises, with the conclusion that compared with the large life insurance companies, small and medium sized life insurance companies are weaker in the growth rate, the level of cost control and profitability.Second, growth of China's small and medium sized life insurance companies. This chapter uses panel data unit root test methods, and use asset, liability, net asset and premium income as the indicators of insurance companies' scale, empirical studied the relationships between size and growth of China's life insurance companies. The empirical results show that when using different variable as the indicator of scale, the results of the relationship between the size and growth of China's life insurance companies are different, thus reflecting some exposed problems during the development process of small and medium sized companies.Third, the analysis of performance of small and medium sized life insurance company and its impact factors. Chapter V and VI, respectively analyzed the the relationship between the market structure of China's life insurance industry and performance of small and medium size life insurance companies and between corporate governance and performance, obtained the result that scale is the most importanct factor that constraints the performance of small and medium size life insurance companies in China. In addition, small and medium sized life insurance companies with different nature of property have significant differences in performance.Fourth, the analysis of constraints, strategy and policy recommendations and the prospect of developmen of China's small and medium size life insurance companies. Constraints include external factors and internal factors, and for different types of companies, development strategy and development prospects were also different.