Research On The Impact Of Insurtech On The Business Performance Of Chinese Insurance Companies

Although China’s insurance industry has shown a vigorous upward trend in recent years,the fly in the ointment is that it is still slightly less developed than other financial industries.In order to promote the continued improvement and rapid development of the insurance industry,the CBIRC has issued the following instructions based on the actual situation: digital transformation is an important way for the insurance industry to implement new development concepts and promote high-quality development;Encourage the insurance industry to actively use emerging technologies and promote its own development with the help of the power of science and technology.The high-quality development of China’s insurance industry is inseparable from the application of insurance technology by insurance companies: insurance companies have realized the application of insurance technology by embarking on relevant technology investment research,new product development research,and investing relevant technologies into the company’s operation and management.how the business performance of insurance companies,especially Chinese insurance companies,will be affected by the use of insurtech;how the impact of insurtech will be realized;To what extent does insurtech affect the operational performance of insurers? All kinds of problems have important research significance at all levels and need to be dug deeper.Starting from the two aspects of insurtech and insurance company business performance,this paper comprehensively analyzes the impact of the former on the latter,and combines qualitative and quantitative research with comprehensive risk management theory.This includes analyzing whether the operation of insurtech will have an impact on the performance of insurance companies,the links that may have an impact on the company,the specific manifestations of the impact,and the degree of impact,and provide suggestions for optimizing the regulatory system and improving the operating performance of insurance companies on the basis of answering the above questions.Based on the theoretical basis,this paper conducts empirical analysis to further analyze the specific impact of insurtech on the business performance of Chinese insurance companies.In the early stage,by combing domestic and foreign literature,the insurtech,business performance evaluation system and comprehensive risk management theory were discussed,an overall research framework was established,and the research ideas at the theoretical level of the article were clarified.At the empirical level,20 property insurance companies and 20 life insurance companies were selected,totaling the data of 40 insurance companies from 2016 to 2020.Based on the four major operating capabilities of insurance companies(repayment,growth,profitability and operation),10 major financial indicators closely related to the operation of insurance companies are selected,and further extracted and screened by the principal component analysis method to obtain the more important financial index components in the comprehensive financial index system,and then obtain the comprehensive score of the business performance of the target insurance company.The double difference model was used to explore the impact of insurtech on the business performance of Chinese insurance companies,and the explanatory variables were the comprehensive score obtained by calculation and the netprofit,the explanatory variables were the insurtech time interaction terms,and the control variables were the total assets of the insurance company,the nature of the controlling shareholders of the insurance company,and the GDP of the region.Empirical results show that insurers using insurtech can significantly improve their business performance evaluation scores.The results of robustness testing using variable substitution and counterfactual testing also support this conclusion.Finally,based on the theoretical and empirical research results,this paper puts forward suggestions from the company and regulator levels to accelerate data fusion and sharing,maintain sensitivity,strengthen infrastructure,and promote strict supervision of technology and legal construction,and carry out research prospects according to the research process.