A Study On Credit Rating Of New China Life Insurance Based On BP Neural Network

The insurance industry is one of the three major financial institutions,it plays an important role in the economic development of our country.Seventy percent of the insurance companies are life insurance companies.The life insurance industry is expanding and revenue is growing.Various factors are promoting the development of life insurance industry.The life insurance industry will develop better and better.But as it develops,it has a higher and higher surrender rate.There were also many serious reparations incidents.The credit degree of life insurance company deeply affects the consumer's capital security.How do consumers choose a trusted life insurance companies to buy the products?We need to solve this problem urgently.Credit ratings can do that.To some extent,credit rating can prevent financial risks,and makes investors' money safer.But the study of life insurance rating in China is not mature enough.This paper draws on foreign mature credit rating index system,constructed a set of rating indexes suitable for Chinese life insurance companies.There are many ways to rate a business,But the BP neural network is the best approach.BP neural network can learn autonomously and has strong fault tolerance.It is not easy to obtain sufficient information when rating a business.When using BP neural network rating,we can ignore the problem of insufficient information.This paper rates life insurance companies from quantitative and qualitative perspectives.Quantitative assessment includes risk management capabilities,financial liquidity,corporate profitability and development prospects.Qualitative analysis includes enterprise size,reputation status,market share and shareholder background.In this paper,52 samples are used to train the neural network,and got 90%.First of all,this paper carries on the credit rating to the new China life insurance(NCI),We then analyzed the various indicators of NCI.This article attempts to analyze ideas from global to local.As a large listed life insurance joint-stock company,NCI has received Fitch A + rating for three years continuously.This is a high evaluation.It's useful to have a credit rating for NCI.We can find the factors that have the biggest impact on the credit rating results of NCI.These findings are helpful for other unlisted life insurance companies.Through the research in this paper,we draw the following conclusions:(1)We have trained and simulated the neural network,Our neural network can predict the credit rating of NCI,and it can be applied to other life insurers.(2)In this study,NCI was first rated and then analyzed,We found that NCI has strong risk management capability but poor operating cash flow.We propose the following Suggestions to solve these problems:In order to maintain the A+ credit rating,the NCI should continue to improve the risk management system,enhance the compensation risk management capability,and accelerate the adjustment of product structure.