The Research Of The Life Insurance Companies’ Product Structure Impact On Company Performance

In recent years, China’s insurance market has been an unprecedenteddevelopment, not only the number of the insurance company increasing, thecompany’s insurance products have mushroomed rapidly increasing. The traditionallife insurance products include survival insurance, death insurance, endowmentinsurance, health insurance, accident insurance etc, their characteristics are passingrisk; The new life insurance products include participating insurance,investment-linked insurance, universal insurance, which are characterized mainlybased on investment and security features supplemented, Various life insurancecompanies are not the same product structure. In the course of the changing of lifeinsurance companies’ development, an extreme phenomenon occurs, that is theproportion of traditional life insurance products which is strong security andsignificant are declining, While the proportion of new life insurance productscontinued to increase. This phenomenon not only reduces the security function ofinsurance products, but also let the insurance industry has changed the originalmeaning, and investment features product also increases the risk of the entireinsurance market. Each insurance company as a separate entity, its operatingperformance will inevitably be affected by the product structure configuration.Based on the above background, this paper research whether the productstructure will affect and how it affects the life insurance company’s operatingperformance? How much will product structure impact on the operating performanceof the company? What kind of structure can bring better results to life insurancecompanies? This problems are the focus of this study, the author will combinetheoretical and empirical study the relationship between the structure of the lifeinsurance company’s products and the company’s consolidated operating performance.First, analyze the impacts of product structure on company performance whichinclude four aspects such as profitability, solvency, operational capabilities, growing ability in theoretical-level. On this basis, with our country’s31life insurancecompanies as samples, use principal component analysis and panel data model toanalyze the impacts of product structure on the company’s consolidated performancein empirical analysis level, First, make a comprehensive evaluation of the operatingperformance so that we can have scores represents the company’s performance anduse the scores as the dependent variable, use products structure indicators asexplanatory variables, we can draw conclusions by the regression results.The study found: First, the increase in operating traditional life insurance productshelp to improve corporate performance; Second, the investment-type life insuranceproducts do not help to improve the operating performance of the company; Third,participating life insurance products have no significant impact on the life insurancecompany operating performance.On the basis of the empirical results, from the point of optimizing life insurancecompanies product structure and improving the company’s operating performance, andfrom the two levels of Insurers and regulators, seeks to making essential recommendationsfor the healthy development of China’s life insurance industry and good operatingperformance of life insurance companies.