Research On Operating Efficiency Based On Profit Source Of Life Insurance Company

The analysis of profit source, as an extremely effective managerial tool, is the in-depth analysis of the statutory accounting profit before tax. And profit source of life insurance companies include "Morality Savings or Loss","Loading Surplus or Loss" and "Profit or Loss from Difference of Interest Rate". They can make the supervisor know that there’s surplus or loss of the company. Simultaneously, there’ll be the source of surplus or loss. And then, it’s convenient to strengthen effectively the management in the key link, adjust the strategy, and achieve the maximize profits.Several new policies of insurance investment has been issued since2010which opened a number of investment channels include Funds, Bonds, Stock, Stock Rights, Overseas Investment, Real Estate and so on. From the operating conditions of insurance industry from abroad, most life companies’underwriting operations have the loss, but they make the profit through the investment. Insurance facility manages over40%of investment assets and the yield is up to10%.CIRC implemented the policy of marketization of insurance rates in2013. However in China, the outlook of insurance investment is uncertain. There’s serious loss from difference of interest rate in several insurance companies. Therefore, it’s unwise to imitate the operating method of foreign insurance companies. We should explore the effective way through profit source and reinsurance to improve operating efficiency of life insurance companies in China.The structure is as follows:Chapter1is the introduction. This section expounds the backdrop, purpose, and meanings. There’s also the summary of three differential analysis of profit and loss in the world of academic, and some new ideas and shortcoming of this study.Chapter2describes the theoretical analysis of the three differential analysis of profit and loss, including their scientific connotation and risk analysis.Chapter3is the current situation of the discussion of the three differential analysis of profit and loss and operating efficiency in foreign. This chapter begins with the relevant introduction in U.S., following which discuss the stable development of the German business model, and then there’s the current situation of Japan. At the last of this chapter, this paper concludes the successful experience and enlightenment from the foreign life insurance company.Chapter4quotes some examples and discusses the current situation. Firstly, there’s the discussion of three differential analysis of profit and loss in current China based on examples. Second partition is the analysis of operating efficiency now.Chapter5is some advices to stabilize operating efficiency of life insurance companies in China. Based on the analysis of the three differential analysis of profit and loss, it explores the key of stabilizing operating efficiency and tries to be accurate and detailed. At last, there’s the analysis of application of reinsurance.