Analysis On The Influencing Factors Of Competitiveness Of Life Insurance Companies In China

With the rapid development of China's social economy,China's life insurance industry has experienced rapid development,the market scale continues to expand,and life insurance enterprises continue to increase.But on the other hand,there are many problems in life insurance enterprises in our country,such as low competitiveness and unable to operate globally.From 2014 to 2018,China's life insurance premium income has achieved five consecutive years of growth,with an average annual growth rate of more than 15% from 2014 to 2017,which is far faster than GDP growth and has great potential.In 2018,the original premium of life insurance exceeded 2 trillion yuan,which was 2.63 trillion yuan.The number of insurance companies in China is also increasing.In 2018,China has opened 203 national insurance institutions,9 more than the beginning of the year,including 77 life insurance companies and 1 more.With the increasing scale of premium income and the number of insurance companies,there are many problems in life insurance enterprises in China,such as small number of long-term insurance products,low solvency,low profitability and low investment returns.Under this background,it is necessary to study the factors affecting the competitiveness of life insurance enterprises and put forward countermeasures and suggestions to improve the competitiveness of life insurance enterprises in China.This article takes the competitiveness of insurance companies in the current insurance market as the research object,divides the life insurance enterprise competitiveness into five aspects: scale ability,profitability,business ability,solvency,and innovation ability.In these five aspects,11 quantitative indicators were refined,and considering the availability of data,a more comprehensive evaluation index system was built around the competitiveness of life insurance companies in China's insurance market.In terms of sample selection,this paper selects 48 representative life insurance companies in China's life insurance market.The 48 companies cover large,medium,and small-sized insurance companies in terms of scale.There are state-owned enterprises,joint-stock companies,Sino-foreign joint ventures,and foreign-owned subsidiaries on the composition and premiums.Income accounted for more than 80% of life insurance premium income,basically reflecting the general situation of China's life insurance market.In this paper,factor analysis and cluster analysis are used to construct an evaluation system for the competitiveness of life insurance enterprises.The factors affecting the competitiveness of life insurance enterprises in China are investigated in many ways,and the core factors are summarized.Through factor analysis,it is found that the overall development level of life insurance enterprises in China is low,and their competitiveness needs to be improved.According to the scale factor,there are 8 life insurance companies whose scale is higher than the industry average,accounting for 16.6% of the sample.The polarization of competitiveness between large enterprises and medium-sized enterprises is serious.From the perspective of solvency factors,SMEs in the rapid expansion of business rank first,indicating that solvency is not only an important aspect of the competitiveness of life insurance enterprises,but also an important guarantee to promote the business development of life insurance enterprises.From the perspective of investment return factors,most of the top rankings are small and medium-sized life insurance enterprises,which shows that improving investment return ability within the scope of supervision is an effective way for small and medium-sized life insurance enterprises to improve their competitiveness.From the point of development factors,most life insurance companies in China have made considerable progress,but there are also enterprises with poor management and reduced competitiveness.From the total score of factor analysis,in addition to the top ranking of the old-brand life insurance companies,some small and medium-sized life insurance companies with accurate positioning also have strong competitiveness in China's life insurance market by building their own characteristics,strengthening their solvency and investment returns.Through cluster analysis,the sample enterprises are divided into 11 categories,and the competitiveness of different categories of life insurance enterprises is different.Through factor analysis and cluster analysis,it is found that China's life insurance enterprises have a higher growth space in profitability and management ability,the ability of investment income needs to be strengthened,and the scale and solvency of enterprises need to be improved.Based on the above conclusions,the corresponding countermeasures and suggestions to improve the competitiveness of China's life insurance enterprises are put forward.