Evaluation Of The Operating Performance Of China’s Life Insurance Companies Under C-ROSS

Due to the continuous opening and development of the life insurance market since the reform and opening up,China’s life insurance companies have also continuously adjusted their operating directions and strategies in accordance with national policies and market demands.The crisis that occurred in the early days made life insurance companies understand that the blind growth of premium income,expansion of market share,and brutal increase in company size from the beginning have gradually run counter to external macro policies and are not conducive to the internal development of life insurance companies.The characteristics of the operating risks of insurance companies lead to life insurance companies gaining profits from their operations while ensuring stable business development.Therefore,they must effectively control and monitor risks.Under such a big background,the supervision rules and risk management ideas of the compensation generation are no longer suitable for the development of China’s insurance industry.In January 2016,the C-ROSS solvency supervision system("C-ROSS ")was officially promulgated and implemented,which brought major changes and challenges to the entire life insurance industry,and the business objectives and concepts of the life insurance industry will be further changed.As C-ROSS compensation policy matures,the application of the second-generation compensation will become more and more in-depth,and new changes and explorations will occur in the evaluation of China’s life insurance business performance.Therefore,under this background,it is of certain significance to study the performance evaluation of China’s life insurance companies from the perspective of the second generation of compensation.This article is based on combing the existing C-ROSS rules and related literature on the operating performance of insurance companies.Explore the relationship between the latest regulatory indicators of the second generation solvency and the operating performance of life insurance companies,and incorporate their indicators into the evaluation system of operating performance.The data of 30 life insurance companies were selected,and 8 indicators reflecting the supervision,profitability,growth ability and asset structure of C-ROSS were selected.Finally,the principal component analysis method was selected to compare and analyze the data.The innovation of this paper is to incorporate C-ROSS supervision indicators into the operating performance e al ation frame ork of China s life insurance companies,try to creatively select the new index of premium income to assets as a measure of profitability,and choose the compensation ratio and sufficient solvency.Finally,through the principal component analysis method,the comprehensive performance score of the life insurance company is obtained.This makes the evaluation of the performance of China’s insurance companies more complete and rational.