Research On The Credit Rating Of Life Insurance Companies In China

Honesty and trustworthiness is the foundation of the development of the life insurance market and the main element of the life insurance company to enhance competitiveness and social credibility. But the objective existence of information asymmetry between the insured and the insurance company make the insured easy to create a sense of distrust to life insurance company, resulting in the company’s credit crisis, and not conducive to the development of the life insurance industry. The credit rating of life insurance company is by rating agencies to conduct a comprehensive assessment of the company’s liability to pay and solvency activities, and use financial index combination of industry development to assess the financial condition of the insurance company, which is a professional and practical credit analysis crediting rating of life insurance company can provided the accurate the company operating condition to insured thus enhancing the trust to the company, and promote the healthy development of the life insurance industry. Credit rating is an import content of the current national assurance supervision organization, which played a significant role in practical application. The application of credit rating in global markets has also aroused the attention of our government. In August 2014, " The State Coucil’s No.10 National notice" proposes to promote the construction of insurance credit system comprehensively. Strengthening the insurance information infrastructure construction, expanding the coverage of the credit records, constructing credit information sharing mechanism and perfecting the insurance institutions of credit evaluation system and disciplinary mechanism, that builds a framework to promote the construction of credit system of China’s life insurance industry.This paper firstly summarizes and analysis the present situation of the domestic and foreign, introduce the meaning and the function of life insurance company credit. Reviews from the reputation theory, asymmetric information theory and methods of credit rating of China’s life insurance company credit rating, provides the theory basis for the following research. Secondly, analyzed the three of foreign insurance rating agencies and two domestic professional rating agencies though the index and method. Combined with the development characteristics of China’s life insurance industry, make the construction of credit system for china life insurance company, to lay the foundation for the following research. Thirdly, briefly analyzed the factor analysis and clustering method, and then choose twelve groups of quantitative analysis index according to the principle of comprehensive, practical, realistic and under able. Making quantitative analysis of the capital structure, profit ability, growth ability of the life insurance company to obtained credit rating of it. Finally, analysis of all the credit rating of the life insurance company and puts forward the correlation proposals for system construction of credit rating in China Life Insurance company and improve the corporate credit level.