Research On Measuring And Factors Of China's Property Insurers' Franchise Value

China's accession to the WTO, China's insurance industry, two years ahead of the first to achieve a full opening. With the reduction in the insurance industry barriers to entry, the domestic insurance companies to enjoy the protection of the super-reduced, competitive pressures, especially with the acceleration of world economic integration, international capital flows increase, the international financial integration and the resulting instability as well as the increasingly fierce competition in the industry, making the franchise value of domestic insurance companies inevitably decline. Because the license given by government is limited, the license implies commercial value. The value of company franchise is the present value of future excess profits. The study found that the size of the insurance company franchise value and risk are closely related to motivation to enhance franchise value is conducive to excessive risk-taking insurance companies to overcome the impulse to achieve the sound operation. Because the insurance company managers franchise value due to the reduction of risk may be increased to increase business motives. Once a successful venture operating earnings are greater than the risks of business failure risk the loss of franchise value, then the manager will be inclined to risk.How to curb excessive risk behavior of insurance companies, the insurance industry to maintain stable and healthy development is the urgent need at this stage to study and solve problems. This article will attempt to research my insurance company franchise value and its influencing factors, enabling regulators and insurance companies are insurance companies can make use of this intermediate amount of franchise value to promote healthy and stable operation of the insurance industry. Regulatory authorities can put a prudent and sound regulatory policies, the insurance company's management also can actively explore in the fierce competition to win a magic weapon, and constantly enhance the endogenous development potential. Thereby enhancing the value of China's insurance companies the right to up, inhibit excessive risk behaviors insurance companies to achieve sound operation.Overseas research on the franchise value more in-depth, but my right franchise value research are still in its infancy, and are currently limited to banks; the franchise value of our insurance companies is still a blank area of research. This article will refer to foreign banks and insurance companies, franchise value of the research ideas, drawing on the domestic banking franchise value of existing research results on China's insurance companies measure of franchise value and impact of factors that make an attempt to research.China's current franchise value of the study, the measurement-based mostly more mature foreign law as a measure of Tobin's Q approach, but because of China's listed insurance companies less, and the validity of the securities market is low, is not suitable for use Tobin's Q method to calculate the franchise value. This paper will draw on research methods after-tax profit of franchise value of our insurance companies to measure. Then that may affect the insurer in selected indicators of franchise value, based on the establishment of multiple linear regression models, regression analysis of the data. This article will first select a representative of the nature of China's 11 property insurers as a study. However, the paper described in franchise value measurement method is also applicable to life insurance companies, but a slightly different impact factors, pending further in-depth study in the future.In this paper, mainly for the following purposes:First, to examine China's insurance franchise value measurement method; second, to explore our franchise value of the insurance company factors, and first used as an example of property insurance analysis; third, in order to strengthen the franchise value of China's insurance companies made the management of insurance companies and government regulatory proposals.In this paper, mainly the following sections:The first chapter is introduction. This article begins by describing the background and writing topics of significance. Describes the opening of China's current insurance market conditions, pointing out that the insurance will become more fierce market competition, market risk is gradually increasing. By increasing the franchise value can effectively inhibit excessive risk-motivation, to promote the healthy development of the insurance industry. Then the value of domestic and international franchise research literature is summarized. As can be seen in the franchise value of foreign research in a leading position, while the domestic stock market due to underdevelopment, so that our franchise value measurement is intrinsically flawed. Due to lack of measurement, our franchise value of the nature and effectiveness of such research can not be well under way.ChapterⅡ, the definition of franchise value and the formation of the source analysis. As a result of the researchers on the franchise value of the research point of view are different, their definitions differ, the value of this concession to use the value of insurance company franchise insurance company continued to operate under the present value of future excess profits.As the franchise value was mainly due to the formation of barriers to entry caused by the analysis of this paper. Two main barriers to entry are, namely, market regulation and economic barriers to entry barriers. And pointed out that the degree of openness as the market continued to increase, the market gradually reduced the role of regulatory barriers, economic barriers to entry will play an increasingly important role, this article will mainly explore barriers to entry associated with the economic impact of factors on the franchise the value of impact.ChapterⅢ, Summarized in of the franchise value at home and abroad on the basis of measurement and made more in line with our insurance company franchise value of the measurement model. First introduce the most commonly used abroad, Tobin Q value method, which is an ideal franchise value measurement method is simple and convenient, easy to compare. But its calculation of measurement-based company has asked to be listed, and the stock market can reasonably reflect the value of the company. These requirements obviously do not apply to China's insurance companies franchise value. Therefore, domestic researchers Yan Li's paper based on the profit after tax law, can be more reasonable to calculate the value of China's insurance franchise.Mainly divided into life insurance and property insurance, insurance due to the two very different nature of the subject, the company's operating policies and actuarial methods and other areas were significantly different. The reasons for this limited time, planning only to conduct empirical research on property insurance companies. Select 11 Property Insurance data specific franchise value. These companies include large state-owned property insurance companies, small and medium sized joint-stock property insurance companies and foreign property insurance companies, which in general, reflect the development level of China's Insurance Industry.Chapter IV will be the first concession on China's insurance companies the value of the possible factors affecting the statistical analysis. On this basis, select non-highly relevant to the six factors to build multiple linear regression equation, with analysis software EVIEWS5.0 regression analysis of relevant data.From the regression results can be seen. Return on equity and total assets, return on franchise value and units are the most significant positive correlation. This shows that the property insurance companies attempting to raise the franchise value and attach importance to profitability is very important. Then other factors were also analyzed to explore.Chapter V Based on the above discussion, we can be improved franchise value can effectively inhibit excessive risk behaviors insurance companies to promote stable development of the insurance industry. This start point of the recommendations of regulatory authorities, mainly govern the insurance industry into the appropriate controls, to strengthen government regulation and supervision of practitioners. Re-focus from insurance companies and self-management point of view put forward a sound governance structure of insurance companies, strengthen internal controls to guard against operational risks and optimize the company such proposals, so that insurance companies in the same market conditions, be able to improve corporate governance, improve operational efficiency, thus effectively improving the company franchise value.As the franchise value of research in China has just started, this exists in many areas still need improvement.