Study On The Influencing Factors Of Business Performance Of Life Insurance Companies In China

Life insurance industry is a special industry based on business risks.After 40 years of rapid development,China's life insurance industry has reached an unprecedented level in terms of asset size,premium income and capital utilization.Life insurance companies have been undertaking the functions of economic compensation and risk management in economic development,especially in the national campaign to fight against poverty and precise poverty alleviation.The social status and market influence of insurance are also gradually improving.With the arrival of population aging and people's high attention to health,the life insurance market presents a multiple levels and differentiated demand.When people buy insurance products,they not only pay attention to the company's scale,but also pay more attention to the service quality and business performance of the company.Although China's life insurance industry has made remarkable achievements,it has long been dominated by extensive management.It has become a general rule of industry development to emphasize scale and neglect efficiency.With the entry of foreign life insurance companies,it has gradually revealed the shortcomings of China's life insurance companies,such as low efficiency,weak competitiveness and weak comprehensive strength.The transformation and upgrading of the life insurance industry has become an inevitable trend of development.Therefore,it is of great significance to study the influencing factors of life insurance company's operating performance for the improvement of company's performance level and transformation and upgrading.Based on the data of 32 life insurance companies in China from 2010 to 2017,this paper attempts to study the factors affecting the performance of China's life insurance companies.The specific ideas are as follows:Firstly,it summarizes the overall structure and framework of the article,combs the relevant literature on business performance and summarizes it,so as to clarify the writing ideas of this article.Then it introduces in detail the development status of China's life insurance industry from the perspectives of the number of subjects,market concentration,product structure,industry supervision,etc.,laying the foundation for further research in the following texts.Secondly,this paper makes a comprehensive analysis of business performance,selecting indicators from solvency,profitability,operation ability,growth ability and capital utilization ability,and calculating the business performance score of life insurance companies by principal component analysis.Then take the comprehensive performance score as the explanatory variable,the multivariate regression model is used to study the impact of life insurance company's product structure,new single payment method,solvency adequacy ratio,premium scale,investment income,surrender rate and comprehensive expense ratio on business performance,and analyze it based on empirical results.Finally,the conclusions of this paper are summarized and relevant suggestions are made accordingly.This paper draws the following conclusions:Firstly,In terms of overall performance,from the perspective of company size,large-scale listed companies have a small gap in their comprehensive performance scores except for PICC Life Insurance.The performance scores of medium-sized companies are generally better each year,while the performance scores of small-scale life insurance companies are generally poor.From the nature of the company,whether it is a Chinese company or a foreign company,the performance score is still related to the size of the company.The larger the scale,the higher the score.In terms of product structure,companies that rely heavily on universal insurance premiums have experienced a decline in performance scores in the last two years due to regulatory policies.Secondly,in terms of influencing factors of business performance,from the product structure,the higher the proportion of traditional life insurance and dividend insurance premium is,the better the performance is.There is a significant negative correlation between the proportion of health insurance,accident insurance,universal insurance and joint insurance premium and performance.From the perspective of the new single payment method,there is a significant positive correlation between the proportion of premiums paid and the performance,and there is a significant negative correlation between the proportion of premiums paid and performance.From other factors,premium size,investment returns and solvency adequacy rate have significant positive effects on performance,while higher refund rate and comprehensive cost rate will weaken the performance level of the company.