Analysis Of The Factors Affecting The Operating Performance Of Our Medium-sized Property Insurance Company

Property insurance market of China has made considerable progress with the improvement of market economic system and the increase of economic aggregate since the reform and opening up policy. Total property insurance premium income of China reached 842 billion 326 million, grew by 11.5% annually in 2015.The insurance market is an oligopoly market in our country. And for years People's Insurance Company of China, Ping An Property Insurance company and Pacific Ocean insurance have split the market. But this situation is changing. From 2004 to 2015,the total share of those three, CR3 was was dropped from 79.87% to 64%. The monopolization has been weaken. It is considered that the increase of insurance organization is possibly one of the main causes of this, change. The establishment and development of medium-sized insurance companies is the most important reason to evoke the change.Medium-sized insurance companies play a key role to flourish the market.Their operating performances are of critical importance to the stability and the structure of the market. Thus, finding influential factors of companies' operating performance is of theoretical and practical significance for the companies and the entire market.Supported by the available literature, this thesis selected some factors which would have effect on business performance, collected related data, empirically analyzed and put forward the following recommendation:-Bring the large shareholder governance into full play and take cautions in foreign capital introduction;-Improve the board leadership structure, pay high attention to talent introduction, training, reservation and development and set up a board of supervisors consistent with the company;-Put more emphasis in quality service and use service diversity strategy.-Optimize business portfolio and lower the auto insurance business rate;-Broaden business scale, make rational distribution and create the brand-name effect.This thesis is divided into four parts:introduction, theoretical foundation, modeling and experiment on model and conclusion and policy recommendation to launch the corresponding elaboration.Chapter 1 is the part of introduction. In this chapter, I explained the aim and meaning of this research, and pointed out the methodology, originality and the shortcoming of this paper.Chapter 2 is the foundation to set forth my views in this paper, namely define medium-sized insurance company. And then try to figure out special position and function of medium-sized insurance companies in Property insurance market. Analyze the particularity of corporate governance for medium-sized insurance companies based on corporate governance theory. At last, point out some problems in the market, such as high degree of market concentration, seriously homogeneous products, high barriers entering this market supported by theory of industrial organization.Chapter 3 is the core part of the demonstration analysis. Assuming ownership structure, board characteristics, etc, as the explained variable and ROE of medium-sized insurance companies as the explanatory variable,1 set up the plural linear regression model and test five years' data of samples. In the course of case study, the software of EVIEWS is used to deal with the data. Finally, this essay makes an analysis and brief comment on the reasons for the relative regression result.Chapter 4 is about conclusions and policy recommendations. According to empirical results of chapter 3,1 proposed related suggestions about equity structure, Board Governance, supervising board government etc. This paper has tried to offer the learners and users certain help to improve business performance of medium-sized insurance companies.