Analysis Of Factors Influencing The Operating Ability Of China’s Life Insurance Company

In nearly a decade, China’s life insurance development has made rapid progress, premium increasing year by year, even in a period that financial crisis have an serious effect on China’s financial industry, our country life insurance also kept thriving and made a new round of growth. When the shadow of the financial crisis fade, life insurance in our country was facing a "bottleneck" problem and, even in2011,premium appeared negative growth The life insurance companies was going through a difficult period.At the same time.they tried to find ways to break through the "bottleneck". For the whole life insurance industry, the year of2012is also not plain sailing.In the first half of2012,the life insurance industry developed badly, it was not recovered until the second half year.In whole year of2012,the life insurance was not prosperous,and the performance of life insurance company was widely different. What was the reason that life insurance and macro financial trended opposite, what factors contributed to life insurance present situation, and how these factors functioned in life insurance companies, further, why life insurance company’s performance was so different, how to face on the development of life insurance companies rationally? The premise to solve these problems is that we enough to understand what factors influence the business ability of life insurance companies in China, what is the path of the impact of these factors and to what extent they affect the operating ability of life insurance companies in our country.To solve these problems, this paper first summarizes on the relevant reports and statistical results,and then based on actual data, objectively describes China’s life insurance "abnormal" phenomenon occurred in the before and after the financial crisis.We are looking for representative factors can affect the ability of the life insurance company from the macro and micro dimensions after the related literature are reviewed systematically. Based on time series data and the multivariate statistical data we make the empirical analysis for these representative factors. We can interpret a series of problems introduced before through the empirical analysis,reveal the actual phenomenon from theory angle and draw some meaningful views and conclusions.After analysis and research, the main conclusions are:(1) in the macroscopic factors influencing life insurance operating ability, GDP has the greatest effect, and it has the same influence in both short term and long term;Then it is interest rate which has a reverse effect in the short term and long term. Inflation rate have a same effect in the short term, but long term effects are uncertain; The Shanghai composite index have a reverse effect in the short term, long term effects not sure.In the longer-term, the first phase of the impact on GDP, inflation rate and the Shanghai composite index will gradually disappear, while the influence of the company’s operating ability is affected by a new round of shock.(2)In microscopic factors which have affect on the operating ability of the life insurance companies,the scale factor has the greatest contribution to it.That is to say, the life insurance company has certain scale effect in our country at present stage.