Research On The Influence Of The Scheduled Interest Rate Reform On Chinese Life Insurance Industry

The determination of the life insurance premium rate is mainly affected by the assumed interest rate,the predetermined mortality rate and predetermined overhead rate.Among them,the assumed interest rate is simply the insurance company’s commitment to the customer’s return rate,but it’s also the most important factor for the pricing of life insurance.The higher assumed interest rate makes the lower the rate of the product;the lower assumed interest rate leads to the higher the rate of the product.In 1978,China restored the life insurance industry.The life insurance companies are generally used high assumed interest rates to attract customers and occupy the market until 1999.Because of the high level of the bank interest rate,this strategy in the development of life insurance industry at the beginning was not subjected to the shock.However from the beginning of 1996,China has entered a rate cut channel,the high rate of assumed interest policy to the insurance company has brought a huge spread loss,seriously affect the solvency of the industry.China Insurance Regulatory Commission issued the "emergency notice" on the adjustment of life insurance interest rate in 1999,the assumed interest rate issued by the provisions of the new policy of not more than 2.5% years of compounding.With the development of China’s economy,the strict control of the assumed interest rates no longer meet the requirements of the development of life insurance industry.China Insurance Regulatory Commission began assumed interest rate market pilot in Tianjin in 2007.After a few years of accumulated experience and discussion of the pilot,the China Insurance Regulatory Commission began a assumed interest rate market reform of life insurance.Reform is divided into three steps,in accordance with the general type of personal insurance,universal life insurance and dividends of personal insurance in order to release the limit of the assumed interest rate ceiling.By building a multiple linear regression model,we have found that this reform has promoted the life insurance industry to become more competitive,and the demand for life insurance has a significant impact.At the same time,life insurance companies face many problems,and we make some suggestions for these...