A Study On The Influencing Factors Of The Liability Reserve Provision Of Life Insurance Companies In China

With the continuous improvement and development of the socialist economic system,the status of the insurance industry in the Chinese economy has become increasingly important.The stable operation of insurance companies has a major impact on the national economy.The adequacy ratio of life insurance liability reserves is the most important indicator to measure the operating risks and debt operating characteristics of insurance companies,so the research on the influencing factors of life insurance liability reserve accrual is of great significance to life insurance companies,investors,and insurance regulatory agencies.From the state system level,life insurance companies are required to fully accrue liability reserves;from the perspective of life insurance company operations and risks,life insurance liability reserves is a direct basis for the life insurance company's profitability and solvency.I have analyzed the factors affecting the life insurance liability reserve accrual.The main impact indicators include compensation ability,risk sharing ability,profitability,operating efficiency,company size,profitability,operating ability,price stability,macroeconomic environment and other factors.This article mainly uses the data of PICC Life Insurance,China Life Insurance Co.,Ltd.,Taiping Life Insurance,TPL Life Insurance,Ping An Life Insurance,and Xinhua Life Insurance,a total of 6 listed life insurance companies from 2007 to 2016 as a sample of the study,selecting the loss ratio,reinsurance ratio,and net asset value,premiums,total assets,net asset return rate,total asset turnover,inflation rate,and GDP growth rate for regression analysis.The research results show that the net assets return rate,total assets,and GDP growth rate have a significant positive correlation with life insurance liability reserves,affecting the life insurance company's profitability,operating ability and solvency.In order to improve the life insurance liability reserve accrual,the following four aspects are proposed for improvement.Firstly,improve profitability and optimize capital operations.Life insurance companies need to rely on professional sales and investment personnel to increase their premium income and improve the efficiency of capital use.At the same time,they shall broaden the use channel of capital to achieve diversified capital operations and increase the return on assets.Secondly,strengthen the life insurance company's ability on large-scale operation.Ensure that the life insurance company expands follows a full market research,and drive the company toward the direction of large scale and specialization;strengthen the life insurance company's internal management to form an internal control system.Thirdly,improve the solvency and risk prevention abilities of life insurance companies.Pay attention to the development of the liquidation of responsibility reserves to ensure that the liquidation results are highly accurate;establish a more effective risk management system to effectively avoid various risks in the business.Fourthly,improve industry supervision and resolve repayment risks.Insurance supervisory authorities also need to exercise control over each company to ensure that each company can withdraw its liability reserves that match its business capabilities;try to reform life insurance financial accounting methods to ensure the efficient use of funds.