China's Insurance Companies, Competitive Analysis And Evaluation

The economy of china is in a high speed development stage, more and more ricks are appearing. Especially the great disasters which had been happened on 2008 and 2009 in china make the function of insurance about transferring risk and social security became more obviously. Since china became a member of the WTO, a lot of reputable foreign insurance companies are rushing into China Market, and they have strong competitiveness. Undoubtedly it will occupy the living space and increase the competitive risks of Chinese insurance enterprise.Now the global financial crisis is constantly damage the stability of global financial system. Insurance as one of the financial system also experiencing an unprecedented test. More and more reputable foreign insurance companies faced severe financial crisis. So Chinese insurance enterprise should grasp this good opportunity, analyse their own competitiveness, find the competition vulnerabilities, in order to enhance the comprehensive competition strength of Chinese insurance enterprise during the world insurance industry, to improve the competitiveness of Chinese insurance enterprise, to build the development foundation for Chinese insurance enterprise during the fierce competition among the insurance industry in the future.Currently in china the existing competitiveness research of insurance enterprise which has mainly focused on the side of appraisal has many defects. One side is about appraisal index system, it is too detailed and complex to choose index, it is against the collection and calculation of index data; The other side is about choosing appraisal approach, now almost research choose Analytical hierarchy process,fuzzy comprehensive evaluation method and so on, these methods require lots of sample data, computational process is very complex, and they were largely effected by people's subjective factors, so the practicability of the evaluation methods are not strong. So this paper following the principles about science,simplicity and practicability construct the competitiveness evaluation index system of insurance enterprises, this evaluation index system consist two parts. One part is direct competitiveness index, which is constructed by three core ability of competitiveness of insurance enterprises (profitability, risk control ability, operation ability). The other part is indirect competitiveness index, which is constructed by quantitative indexes. Besides China Life Insurance Company Limited,Ping An Insurance (Group) Company of China and China Pacific Insurance(group) Co, the other insurance enterprises are not listed companies, it is too difficulties to collect related data, there is limited statistical data of the domestic insurance enterprises and the data is gray. With no enough in formation and grey feature, the system of the competitiveness appraisal of insurance enterprises is grey system. So this paper combining research purpose and the grey feature of Chinese insurance enterprises selects the Gray Correlation Analysis Process method, this method is more objective and practicability. The empirical research is based on the competitiveness of 12 Chinese insurance enterprises, the data of them mainly takes from the Chinese Insurance Yearbook 2009.The result of the paper is similar to the result of the past scholars and evaluation organization's research. The results close to the reality. It shows that:Chinese listed insurance companies, the ones standing the first three ranking, have obvious competitive advantage; Following the listed companies are the medium-sized insurance enterprises, which develop faster in recent years. Although the medium-sized insurance enterprises is more inferior than the listed companies, during the evaluation process, we can find that these small enterprises is better than several large companies in some aspects of the growth situation, and these small enterprises is continuously shorten the gap with the listed companies; A few insurance enterprises which ranking bottom have very poor competitiveness, and compared with the enterprises which is in front of them, they have obvious disadvantages, the competitiveness of them should be improved as quickly as they can.