A Research On Performance Evaluation Of The Life Insurance Company Based On Balanced Scorecard

Since the Reform and Opening up, the development of life insurance industry has spectacular result in china. The principal amount of the life insurance business, premium income and insurance assets have substantial growth, gradually developing a fierce competition between Chinese and foreign life insurance companies. The competition which national insurance companies face will become increasingly fierce. External pressure and internal forces urgently require Chinese life insurance companies to strengthen their own management and improve operational performance."If you do not evaluate, you will not be able to manage."Therefore, whether we have a scientific and rational method to measure operating performance of the life insurance company and then analyze the strengths and weaknesses of management is very crucial.The Balanced Scorecard (BSC) rose in the United States in 1990s and swept globally. It is the enterprise performance evaluation method which has the strategic thinking. The application of BSC in many world-class enterprises in Western countries and some powerful commercial banks and insurance companies and other financial services has shown BSC is a strategic tool for the life insurance companies to deal with the crisis in the era of rapid changes. The main purpose of this dissertation is to explore how to use BSC in Chinese life insurance company, according to the conditions of China.There are four chapters in this dissertation:In Chapter One, the dissertation theoretically analyzes the BSC performance evaluation system. Firstly, it briefly introduces financial perspective,customer perspective,process perspective,learning and growth perspective of BSC. Secondly, it explores the theoretical basis for the building of BSC performance evaluation index system——System Management Theory,Strategic Management Theory,Stakeholder Theory, Then summarizes the apocalypse for the building of BSC performance evaluation index system. Thirdly, there is a brief analysis of the meaning and role of BSC strategy map. Fourthly, it provides four supplementary explanations: existence of a causal link between the four perspectives of BSC; the"balance"of BSC in four areas; the four perspectives of BSC are not fixed; determination to apply performance evaluation system should be through demonstration study.The Chapter Two about the life insurance company BSC application is the core content. It is order to provide the theoretical basis and the practical framework of BSC application in the life insurance company. This chapter is divided into two parts. The first part is about analysis of superiority of BSC application in the life insurance company. It figures that there are two points of superiority of BSC application in the life insurance company. Firstly, it overcomes the shortcomings of the traditional financial performance evaluation; secondly, its advanced performance evaluation mechanism agrees with the business features of the life insurance company. The dissertation discusses the second point in detail, it shows the reasons are the particularity of the life insurance company accounting information,the intangible feature of the life insurance products,life insurance business having a long time span,numbers of links in the life insurance business process,the negligibility of defects of BSC application in the life insurance company. The purpose of the second part is to study the precondition,steps of the implementation and evaluation perspective of the application of BSC in the life insurance company. At the end of the second part,the dissertation proposes the life insurance company BSC model should add an evaluation perspective for the insurance funds investment business process.The Chapter Three is about the building of the life insurance company BSC index system. This chapter is the main content of the dissertation. The building of index system is a key element of implementing BSC in the life insurance company successfully, and it is the most significant difference between BSC application in the life insurance company and other general businesses. Therefore, there is a detailed discussion. This chapter is divided into two parts. Firstly, there is an overall study on BSC index system to solve theoretical basis problems, laying the foundation for the following research. From the corporate governance structure and features of the life insurance company, the dissertation discusses how the key stakeholders influence orientation of the company value according to their negotiating capacity. Therefore, it investigates the corporate governance structure of the life insurance company to lay the foundation for the building of index system. Then the dissertation makes a concrete analysis of the building of BSC index system in the life insurance company. The dissertation respectively discusses the index choice of financial perspective,customer perspective,insurance business process perspective,investment business process perspective,learning and growth perspective. In the second part, the dissertation shows recommendations for the building of index system in the specific life insurance company.The fourth chapter of dissertation shows the thinking of BSC practice in Chinese life insurance companies. Firstly, through the case of China Life Insurance Company Limited, the dissertation visualizes BSC application in Chinese life insurance companies. The second part is about the significance of BSC application in Chinese life insurance companies. In the third part, according to the situation of Chinese life insurance companies,the dissertation explores the main obstacles of BSC application in Chinese life insurance companies。For BSC application,the last part is about the main issues which Chinese life insurance companies should pay attention to.The main innovation and contribution of the dissertation are as follows:The first is the study subject. The study on the BSC application of the life insurance company in China is seldom. Secondly, the dissertation proposes the perspective that the advanced performance evaluation mechanism of BSC agrees with the business features of the life insurance company, and conducts a detailed analysis. Thirdly, the dissertation proposes the life insurance company BSC model should add an evaluation perspective for the insurance funds investment business process, and proposes my own view for the building of its index system.