Empirical Research On Chinese Insurance Companies' Operating Performance

Finance is the core of modern economy, meanwhile the life insurance business is an important component of the financial sector, and it plays an important role in the development of the entire national economy and the stability of society. In accordance with China's WTO accession commitments, China's financial market will be gradually liberalized, the life insurance industry will inevitable to face unprecedented challenges. Chinese-funded insurance companies must not only to face surging domestic industry's competitiveness, but also actively deal with a large scale of foreign life insurance companies'challenges. With the growing competition in the financial industry environment, improving operational performance and enhance their own competitiveness are fundamental for the life insurance companies to guard against financial risks, access to the survival and development. Therefore, it has great value and practical significance to conduct an objective, comprehensive analysis on the current operating performance of China's life insurance companies and propose many effective policy recommendations.This paper related performance evaluation methods of industries from abroad, combined with the specific situations of domestic life insurance companies, has been selected the factor analysis and the Balanced Scorecard as a major evaluation methods, corresponding to the principles. Firstly, chooses the method of Factor Analysis on the life insurance companies operating performance's evaluation, taking the forefront of the top 14 life insurance companies'15 financial indicators for the analysis as samples. Then uses SPSS 12.0 for factor analysis, which helps to get the four main draw Components of 14 life insurance companies and the four main components of the performance scores, and then, calculates each company's operating performance scores and ranking on the basis above. Secondly, uses the method of cluster analysis to classify life insurance companies, and identify different types of constraints operating performance of the life insurance companies. Finally, this paper puts forward policy recommendations to improve business performance of the life insurance companies.This paper reviews the general theory on the business performance firstly, and then offers the traditional methods and modern methods on evaluation of business performance. Secondly, on the country's development of China's life insurance industry and based on actual surveys, as well as the relevant literature available, puts forward a number of issues in the current domestic life insurance industry. Thirdly, this paper selects a reasonable indicator, using the method of single indicates, to analysis the profitability, development capacity and risk control capabilities of China's life insurance companies. Once again, according to life insurance companies for comprehensive evaluation of the performance characteristics and requirements, we design a set of evaluation index system, using factor analysis and cluster analysis methods on China's life insurance companies'operating performance as the empirical analysis. On the basis of factor analysis and cluster analysis, we analyze from the points of the profitability and development capacity, the ability of corporate governance and corporate risk control capabilities of life insurance companies. And the different types of life insurance companies are constrained by the operating performance of its respectively key elements. Finally, in accordance with the results of the analysis above, this paper suggests recommendations respectively according to the large state-owned companies and small or medium-sized life insurance companies as to their own situations.The paper uses the method of qualitative and quantitative analysis to study the life insurance companies of China. It has realized the scientific evaluation on domestic life insurance business, and also found certain deficiencies, thereby, address some policy suggestions for life insurance companies, which has significance important to the stability of China's financial industry development.