Research On The Impact Of China's Life Insurance Market Concentration On Company Performance

Since the reform and opening up,the life insurance market has been continuously opening up and developing.due to the continuous opening and development of the insurance market,the concentration of China's insurance market has been declining,the competition in the industry has become increasingly fierce,but also more cruel.Many insurance companies,such as Qianhai Life,Huaxia Life and Taiping Life,have been developing continuously,breaking the monopoly position of the previous five insurance companies,and the pattern of China's life insurance market has changed.This paper expects to make a thorough study and analysis of the impact of market concentration on the performance of life insurance from the perspective of the development of China's life insurance industry,to provide theoretical basis and reference value for the government and regulatory authorities to improve the market access and exit mechanism of life insurance,optimize the structure of the insurance market,and to correctly judge the position,analysis and other life insurance companies in the life insurance industry.The disparity of the company's operating performance and the formulation of the company's development strategy provide the basis for decision-making.The first part of this paper is an introduction.This part mainly introduces the research background,significance and current situation of this article.China's economy is developing rapidly.Life insurance industry has made great progress by means of opportunities.More and more life insurance companies have been established one after another.Competition in the life insurance industry is becoming increasingly fierce.The market pattern has changed quietly.Many unknown life insurance companies have entered the first place in the life insurance industry.First and second echelons.Therefore,in this context,it is of practical significance to study the impact of life insurance market concentration on company performance.By collecting a large number of literature,this paper summarizes the research situation at home and abroad.Then,this paper introduces the research ideas,research methods and innovations.The second part of this paper is about the market concentration and its measurement index company performance and the related theoretical analysis of the relationship between the two.In terms of market concentration index,this paper introduces five methods,and finally chooses industry concentration index,Hirschman index and entropy index to measure.In terms of corporate performance,this paper mainly describes the performance evaluation methods and the factors affecting corporate performance,providing a theoretical basis.On the relationship between them,the paper mainly introduces the market power hypothesis and efficiency structure hypothesis,which provides theoretical basis for quantitative analysis.The third part mainly measures and analyses the concentration degree of China's life insurance market from three aspects: industry concentration degree,Hirschman index and entropy index,and draws the conclusion that the concentration degree of China's life insurance market has changed from high oligopoly type II to competition type I.At the same time,according to SCP theory,using the path of market concentration-behavior-market-company performance,this paper deeply analyzed the transmission mechanism of different market concentration degree affecting the operation performance of life insurance companies.From the point of view that life insurance companies have different price and non-price behaviors under different market concentration,it is concluded that life insurance market presents different characteristics under different market concentration.The different market characteristics have different impacts on the five aspects of profitability,solvency,operation ability,growth ability and asset quality of life insurance companies,and then affect the operating performance of life insurance companies.The fourth part of this paper mainly uses the principal component analysis method to measure the operating performance of 41 life insurance companies in China from 2010 to 2017.At the same time,using the fourth part of the performance measurement results,the least square method is used to regression analysis of the impact of market concentration on market performance.Finally,three conclusions are drawn: the operating performance of large-scale life insurance companies is higher than that of small and medium-sized life insurance companies;the market concentration is negatively correlated with the operating performance of life insurance companies;the market concentration is decreasing,and the operating performance of large-scale life insurance companies is increasing more than that of small and medium-sized companies.The fifth part of this paper is an analysis and explanation of the results and an attempt to make suggestions on how the regulatory authorities can guide the market to a healthy direction of competition and how to increase the adaptability of life insurance companies to changing market concentration.