Study On Business Structure Of China Life Insurance

In the past ten years, life insurance industry of China has maintained rapid rate of development. The scale of premium income grows rapidly and total assets of the industry continue to expand. Simultaneously, life insurance industry has some problems such as big fluctuation of growth and depletion development. As the current international financial crisis deepens and life insurance industry will go through developmental transformation, how to avoid risk effectively and to improve management efficiency become the core issue of life insurance development in such external and internal environment.The main research object of this paper is to study business structure of life insurance. The main line is to study how to solve practical problems of life insurance industry. The pointcut is study the risk and efficiency in the operation of the industry and to analyse the position and function of business structure in the management and development of this industry. Combining theory with practice, this paper summarized and put forward the connotation as well as category of life insurance business structure theory. With the help of econometric model and empirical analysis, this paper studied detailed relationship between business structure and the risk and efficiency of life insurance business in China.Revolving the research objective which is to analyse the position and function of business structure in the management and development of life insurance industry, this paper went further into the relationship between theoretical basis of business structure and development of life insurance, and into the effect of business structure adjustment in China. In main chapters, this paper raised the concept of life insurance business structure,analysed the effect of business structure in management process and its relationship with management strategy, summarized the real effect of business structure and concluded that business structure effects life insurance management from two aspects, risk and efficiency.Then using the research thought which focus on the effect of business structure on risk and efficiency, this paper summarized the basis theories of life insurance risk and efficiency which are beneficial to the following study. Then this paper analysed the relationship between the development of life insurance industry and the change of business structure; summed up the real effect of business structure. In order to strengthen the argument, this paper compared the related variables of China to that of France, a developed country who is comparable to our country, and concluded that the risk and efficiency of life insurance relates closely to business structure. In order to study the specific influence of business structure on risk and efficiency of life insurance management, this paper set up an econometric analysis model to study the influence of business structure on risk and efficiency. The model used real data from life insurance business and analysed different business structures as well as the quantitative relationship of different business strategies with the risk and efficiency of life insurance management, from three aspects including static effect, dynamic effect and synergistic effect. Considering the reality of business structure adjustment in life insurance industry, this paper analysed the background, implement and effect of this adjustment based on the result of quantitative analysis acquired earlier in this paper. This paper also made concrete suggestions on the supervision and optimization of business structure adjustment in life insurance industry. At last, the author summarized all conclusions obtained throughout this paper; pointed out that the theory of business structure enriches the connotation of life insurance management theory and that optimization of business structure contributes to reducing business risks and improving efficiency effectively; and made suggestions on the optimization of business structure under different circumstances. The author hopes that the research of business structure will open up a way to maximum efficiency in life insurance management on the premise controllable risk.