The Research On Credit Rating Of China Property Insurance Company Based On Financial Indicators

John Moody addressed the view of railroad bonds in1909, the world’s first rating agency Moody was found. After that the other world’s two major rating agencies have been found and grown gradually. At the international background of global rating market is monopolized by three major rating agencies, in1980s, rating agencies began to be found in China. In the year1998, the credit rating of insurance company was begun in China. In recent years, with the deepening of China’s economic reform and the social security system constantly improved, the insurance industry has developed fast. The number of property insurance company has been increased obviously since2000, which began to form a pattern of monopolistic competition; property insurance premium income grows fast in a long term. The property insurance market is fully open in China. As a third party, credit rating could make a fair assessment of the credit status of the property insurance company, which make policyholders know accurately about company’s credit status. For this purpose, this article research the credit rating of property insurance company, so can supply help for the policyholders and investor’s investment. This has great practical significance, and also is this study’s starting and ending points.This study use factor analysis and cluster analysis method, and distinguish rating method between different property insurance company and life insurance company. By using the reference of experience of foreign insurance rating agency, we establish a credit rating index system and rating model for the property insurance company in China which provides a useful reference for the evaluation of the credit rating of the property insurance company in China.Specifically, this article elaborate comprehensive overview of the development status of China’s credit rating of the insurance company, establish a credit rating index system based on financial indicators, use the application of factor analysis concentrated, and come to a common factor and integrated score; Finally, through using of cluster analysis method for determining the credit rating of our property insurance company, complete the establishment of the rating model. The end of the article, according to their findings, I’ll give a few suggestions to the credit rating of the property insurance company in China for improvement.