Research On Performance Evaluation Of Chinese Life Insurance Company Based On Analytic Network Process

To whole appearance, as the market order of the insurance in our country isnonstandard, the operation of Life Insurance lays particular stress on the developmentof investment products, which results in weakening of the insurance security features.In addition, during the management, Life Insurance Company pays too much attentionto the expansion of quantity, Life Insurance Companies in our country will beconfronted with the bottleneck of the operation and development consequentially. Toconquer the developing predicament, domestic Life Insurance Companies have toweigh the performance level scientifically and improve the ability of management andrisk prevention. Now Data Envelopment Analysis, Key Performance Indicator andBalanced Scored Card are the approaches of performance in our country. However,corresponding timeliness and scientific level are lacked in some research and analysis,which is resulted from the differences between the domestic and foreign life insurancedevelopments and the evaluation approach itself. So it plays a key role for thedevelopment of Life Insurance Companies in our country to build advancedperformance evaluation index system and apply the comprehensive evaluationapproach.Advantages and disadvantages of the current performance evaluation approachesare compared combined with the developing status of the domestic Life InsuranceCompanies. Then the Analytic Network Process (ANP) is introduced to constructperformance evaluation indicators to realize the comprehensive evaluation anddemonstration analysis of the Insurance Company. The framework of this paper are:First, theory and demonstration were combined to select and verify the performanceindicators of the Life Insurance Company. The performance evaluation was dividedinto four subsystems, i.e. Profitability Index, Solvency Indicator, DevelopmentIndicator and Operational Indicator. Then through analysis of relative membership andcorrelation level, eleven performance indicators were chosen to build the performanceevaluation indicator system of the Life Insurance Company. In the second part,according to the questionnaire and expert marking, Super Decision (SD) software wasapplied in weighting of the evaluation indicators. The third, according to theestablished performance evaluation indicator system and the indicator weighting, andcombined with the real operation cases of the domestic Life Insurance Companies from 2004to2008, performance evaluation model of the Insurance Company was built.Unweighted super matrix and limit weighted super matrix at the end of each year werecalculated, and then the comprehensive dominance level order of each Life InsuranceCompany in the five years is educed. In the last part, the results of the demonstrationevaluation were analyzed to draw an understanding of the current operation status anddevelopment tendency of the Life Insurance Company in our country, and the schemeto solve the problems in the operation and development was proposed, which canprovide reference for the healthy development of domestic Life Insurance Company.