Research On The Impact Of Life Insurance Company Product Structure On Business Performance

Since the restoration of insurance business in China,personal insurance has developed rapidly.Its premium income has increased from 1.6 million yuan in 1982 to 2,072.2 billion yuan in 2018.In less than 40 years,the premium income has exceeded 2 trillion yuan,This make it become the second largest life insurance market in the world.On the other hand,due to the immature life insurance in China,various life insurance companies over-developed new life insurance products in order to increase the scale of premium income.This extensive growth model has led to many problems such as structural imbalance of life insurance products and weakening of support functions.The unbalanced growth pattern of the life insurance market has seriously affected the sustainable development of the industry.The China Insurance Regulatory Commission issued a series of regulatory policies to promote the return of insurance products to the guarantee function.Although the share of investment products has declined in recent years,the structural problems of life insurance products still exist.The unbalanced product structure of the life insurance market not only weakens the function of insurance protection,but also loses the core competitiveness of the industry.It also brings huge risks to the company's operations and affects the company's operating efficiency.Therefore,it is particularly important to study the impact of the product structure of life insurance companies on the company's performance.Firstly,based on reviewing the existing research results,this paper combs the theoretical basis and reality of the research object,and then theoretically discusses the mechanism of the life insurance company's product structure affecting the company's business performance,and then establishes the life insurance product structure and the company's business performance indicators.The evaluation of the product structure and business performance of the research object was carried out.Finally,the panel data of 28 life insurance companies in China were used to empirically test the impact of the product structure allocation of life insurance companies on the company's business performance.The basic research contents and conclusions of this paper are as follows:First,the theory and mechanism analysis of life insurance product structure and company operating performance.Combining life value theory,optimal insurance theory and demand hierarchy theory,this paper analyzes how life insurance demand affects the structure of life insurance products,and then based on the three theories of transaction cost,principal agent and risk dispersion,from profitability,solvency,and operational stability.And the growth ability to study the impact mechanism of life insurance product structure on the company's business performance.Secondly,the measurement and evaluation of life insurance product structure and company's business performance.In terms of product structure of life insurance companies,it is found that the product structure is undergoing transformation through analysis of product structure,and there are differences in product structure among life insurance companies of different scales and different shareholder backgrounds.In terms of business performance of life insurance companies,the business performance scores of life insurance companies were established by selecting the relevant business indicators of 28 life insurance companies in China from 2007 to 2016,and the operating performance differences of life insurance companies with different scales and different shareholder backgrounds were analyzed.Then,the life insurance product structure is an empirical analysis of the company's business performance.Based on the theoretical basis,the dynamic GMM method is used to empirically test the impact of the structure of life insurance products on the company's operating performance.The empirical results show that increasing the share of common protection products is conducive to the improvement of the company's operating performance,and the increase in the share of new investment-type life insurance products is not conducive to the improvement of the company's operating performance.Finally,it proposes policy recommendations to optimize the product structure to improve the company's business performance.Combined with the market conditions and regulatory environment of China's life insurance market,some suggestions are given from the perspectives of life insurance companies and regulatory policies.It is hoped that life insurance companies can optimize product allocation and improve the company's operating efficiency.This paper uses the dynamic factor method to construct the life performance index of life insurance company,and uses the public factor to evaluate the life performance of life insurance company,and analyzes the current situation of life insurance company's business performance from the empirical point of view.In order to solve the endogeneity problem,this paper uses the dynamic GMM model to analyze the impact of life insurance company product structure allocation on the company's performance.The above highlights may make some contribution to the life insurance company's product structure optimization and company business performance research.