Empirical Research On The Profit Path Of Insurance Companies

After 20 years , China's insurance industry has gained nearly 2 trillion in total assets. China Life, PICC, China Ping' An Group and other companies have grown up to a considerable scale. For such kind of insurance enterprises, They are facing the reality how smooth from the startup stage to growing period. However, the reality is not very well: one hand, insurance industry's competition intensifies, so companies underwriting profit are going down and down; The other hand, 2 trillion Yuan of assets are mainly in the lower yield form of bank deposits. Under such circumstances, domestic society forms two kinds of views: Foreign insurance companies' profit mainly come from the utilization of insurance funds, while its primary business ~ underwriting business makes little contribution to the finally return. Therefore, the domestic insurance industry should increase the utilization of capital size. Another view is that the insurance companies' underwriting business is the source of profit, sothe insurance company should concentrate on underwriting business.This paper gathered more than 50 companies' annual papers in the world as the sample. The author made the empirical analysis on these papers. This paper goes on from the following five aspects: profit before tax, underwriting profit, return on investment, cost level, solvency rations. The empirical research shows that: China's insurance companies underwriting business still have large room for development. Underwriting business has the lower efficiency, higher cost; while in the area of capital utilization, the efficiency is also very low. And then, this paper proposes the following points:Regarding underwriting business as the mainly profit path from a strategic perspective;Exploring the use of insurance funds appropriately to make it become the important supplement of insurance companies' profit.