Research On The Effects On The Business Performance From The Product Structure Of Life Insurance Company

Recently,the insurance market in China is developing at a breathtaking pace.Not only the quantity of insurance product but also diversity of insurance product are increasingly dramatically,including traditional life insurance products and new-type life insurance products.To gain the best profit,every life insurance company is trying to adjust their product structure configuration with different means.With adjustment of product structure configuration,the percentage of traditional life insurance products which can resist the risk effectively and provide reliable safeguard function tend to reduce.While the new-type life insurance products that present more investment functions and lower safeguard function have became the main trend,which would have a big influence on the adjustment of product structure configuration for life insurance companies in terms of operation and profits.Based on the related research at home and abroad,this paper firstly from the perspective of theory analyzes life insurance company product structure and the operating performance of the company and its influence factors,illustrateing how the product structure affects the company's performance.And then China life insurance branch in hebei province as the research object,analyses the nearly 20 years the change trend of product structure and business performance.The Empirical part uses principal component analysis and time series model,by generalized least squares estimation regression analyses empirically the influence of insurance company product structure on the company's comprehensive performance.The results show that the different product structure does have great influence on the company's performance.The account of ordinary life insurance product is improving which is help to improve the company's operating performance,and the influence on the company's business performance is significant,the account of share out bonus product is improving which will also improve the company's operating performance,but the effects on company's performance cannot even with ordinary product significantly,while the account of the health insurance and accident risk insurance product is improving which is not conducive to improvement of the company's operating performance.Based on the above analysis,this paper from two aspects of insurance companies and regulators put forward the advice of the optimization of the structure of life insurance products and improve the company's operating performance.