The Evaluation Research Of Investment-Linked Insurance’s Investment Performance In China

China’s investment-linked insurance is an innovative life insurance products,although a short developing time of13years,the products expand rapidly.By the end of May2012,there are30insurance companies managing217investment-linked insurance accounts.But in the field of insurance research,there is still no systematic research on the investment performance,theoretical development is relatively slow.The investment performance appraisal of investment-linked insurance can provide guidance to policyholders,on how to choose companies,how to choose outstanding accounts,it can help insurance companies know how to improve the products structure and expand their business sales,it can also provide advice to the supervision department about maintaining the normal operation of the market.lt is the first attempt to use the data envelopment analysis(DEA) method in the investment-linked insurance products,so the paper has some theoretical significance.This paper introduces data envelopment analysis(DEA) thought,then build a data envelopment analysis(DEA) model which is suitable for our investment-linked insurance’s performance evaluation.The aim is to evaluate five types of current investment-linked insurance accounts.The core research content of this paper has the following three parts:First,expound the characteristics of the investment-linked insurance products,comparing with traditional life insurance,universal insurance,dividends insurance,and the funds’similarities and differences,stress the advantages.Describe the developing status from accounts number,asset size and regulatory.Second,build a suitable data envelopment analysis(DEA) model on the investment-linked insurance.Based on linear programming equation and dual programming equation,take the input-oriented method and choose the four input index,there are initial total assets,monthly VaR,operation expense ratio,currency cash ratio.We also choose two output index:the average monthly rate of return,and the total assets of the end of year.Finally,we do the empirical study on the five types of accounts.Classify the160accounts which established prior to Jan.2011into five types,such as exponential, radical,mixed,bond and currency type,make between-group comparison and group comparison.We analyze the empirical results from three angles,there are relative efficiency,reference set and variable difference analysis.According to the evaluation results,we rank them,give direction and size of the improvement.This paper’s main conclusion is:First,in the research range,most exponential,bond and currency accounts’technical efficiency is higher,radical and mixed accounts dragged by market,inefficiency account for more.Second,in the accounts that their inefficiency is from scale,bond accounts are the most.Because the scale of bond accounts is too small,our country’s national debt,company debt restrict the bond accounts’development directly,so expand issued bonds is a priority.Third,evaluate the efficiency of overall company performance through investment-linked insurance accounts,we found that China Life,Peace Life Taikang Life and Xincheng Life are superior to other companies.These companies have good comprehensive strength,nice information disclosure and outstanding investment team.The main recommendation of this article:insurance companies should improve products,change marketing strategy to attract the right customers,so as to promote the expansion of the account assets.Radical accounts and mixed accounts have high risk,so,diversification of investment should be carried out to optimize the portfolio and reduce risk exposure levels.Operation costs is also an important expenditures,the inefficient accounts should reduce costs to improve performance.Although most accounts’currency cash ratio has some space to reduce,but the reduce value is small,for the proportion is in a reasonable level.