Research On The Credit Rating Of Life Insurance Companies In My Country Based On Factor Analysis

In the 21 st century,the Chinese economy has ushered in rapid development,and in2010,the total economic output surpassed Japan to become the world's second largest economy.In this context,China's insurance industry has also developed rapidly,and has played a huge role in maintaining social stability,economic compensation,and financial financing.While the rapid development of China's insurance industry,on the one hand,it promotes the development of China's national economy,on the other hand,it also faces some problems and contradictions that need to be solved urgently.These problems and contradictions have become obstacles to the healthy development of China's insurance industry.The insurer's illegal operation,the false cost,the industry's self-discipline ability,the information asymmetry in the insurance industry,the backward supervision technology and the imperfect legal basis have led to the serious loss of credit in China's life insurance industry.In order to effectively solve the problem of credit shortage in China's insurance industry,it is a more convincing solution to carry out credit rating on insurance companies.First of all,based on the study of the research results of domestic and foreign scholars in the credit rating field of insurance industry,this paper elaborates on the concept and method of life insurance company credit rating according to the characteristics of life insurance companies.Compare the credit development status of domestic and foreign life insurance companies,and compare the domestic and international credit rating methods.Secondly,this paper analyzes and studies the credit rating methods and credit rating indicators systems adopted by authoritative credit rating agencies at home and abroad.Based on the development status of China's life insurance industry,based on relevant principles and drawing on foreign advanced experience,we will build a rating index system that suits the actual situation of China's life insurance industry.Based on this,we use the factor analysis method to carry out credit ratings and grades for 50 selected sample companies.Division.Finally,through the results of empirical analysis,in-depth analysis and research on life insurance companies in China.The research results show that among life insurance companies in China,Chinese life insurance companies are more profitable than foreign life insurance companies,but foreign life insurance companies have advantages in business management.In addition,the study found that China's life insurance companies generally performed poorly in terms of capital and repayment adequacy.And on how toimprove the credit level of life insurance companies in China,constructive opinions for reference from the external factors of China's life insurance companies and external factors such as personnel training,market environment and legal system construction.