The Research On Performance Appraisal Of Insurance Enterprises On The Basis Of Grey System Theory

With the across-the-board entry of foreign capital, great changes have happened in domestic life insurance firms'operating circumstances. Life insurance companies are facing with unprecedented severe competition, and the competition is focused on performance.As important basis of performance improving, performance appraisal plays an active role in providing support for making decisions, carrying out strategical program, satisfying stakeholders'demands and improving management, it is very essential to life insurance firms. The paper is aimed to popularizing and developing grey system theory in the field of performance appraisal for life insurance industry. As a try, it is helpful to open the thinking way of enterprises'performance appraisal, having extensive practical applications.General methods and current indexes system of enterprises'performance appraisal have their own conditions and scope for carrying out. Grey relation analysis is suitable for uncertain condition in which samples and data are insufficient. It can avoid the influence of weight, appraisal criterion is objective and computing process is simple, so grey relation analysis is fit in with performance appraisal of life insurance firms. It provides a new thinking way.It is the key factor of evaluating performance of life insurance firms that whether can construct a scientific indexes system or not. According to the operating characteristic of life insurance firm, performance is mainly expressed in profit-making ability, solvency, business-operating ability and developing ability.The paper selects indexes from the above aspects on the basis of making clear the key driving factors of performance of life insurance firms, and then constructs a performance appraisal model by using grey relation analysis, so as to evaluate domestic life insurance firms and foreign capital life insurance firms. The appraisal result is credible to an appropriate extent, and this can prove that grey system theory can be put to use in performance appraisal of life insurance firm.On the basis of analysis about appraisal result, the paper designs some channels for domestic life insurance firms to improve their performance, which are reinforcing the financial analysis, founding solvency warning system, entering into capital market and entering the market for the purpose of raising funds, carrying out some business through outsourcing, optimizing business process, and perfecting the supervision, improving performance of the supervision.