A New Analysis Model Of Profitability For The Non-Life Insurance Companies

With the social progress and the economic development,the insurance becomes more and more important.Also,as the economic "promoter" and social "stabilizer",it plays a significant part in the construction of the harmonious society.At the present moment,our country has reached the sticking point of the "11th Five-year Plan"(from 2006 to 2010),that is the all-round competitive stage following the protection period after our entry of World Trade Organization.Therefore,how to promote China's development in the insurance industry,make it run neck to neck with the banking loans and securities in the financial market,and attach its important role to advancing the reform,guaranteeing the economy,stabilizing the society and doing good to the people,has become the critical issue.The sustainable and steady development of our economy,the more perfection of economic,systematic and institutional environments,and the further openings of the insurance market bring the unprecedented challenges for our non-life insurance businesses,as well as provide the good opportunities for their fast development.In face of opportunities and challenges,how to establish a new analysis model of profitability in underwriting which can keep up with the international practice while getting adjusted to the management of our non-life insurance companies,has turned into the main concern which must be settled in our non-life insurance companies. Especially at the moment of our economic change from the extensive pattern to the intensive one,the construction of a new analysis model of profitability in underwriting has become an essential tool for the realization of the focus on the business quality and profits from the only pursuit of business progress and scale.The thesis,from the aspects of the serious competitions and the management risks of the current non-life insurance market in China,tends to analyze the setbacks of the non-life insurance companies in operation and management,point out the necessity of the construction of a new analysis model of profitability in underwriting, and thus put forward the methods of its construction and its specific applications in practices.The thesis includes four chapters.The first chapter introduces the current situation of our non-life insurance market and its profit risks and solvency risks.The second chapter tells about challenges of operation and management that the non-life insurance companies face up to in the drastic market competition,analyze the current problems and vulnerabilities that exist in the financial management system,and thus point out the necessity of the construction of a new analysis model of profitability in underwriting for the non-life insurance companies.The third chapter probes into the methods of the construction of a new analysis model of profitability in underwriting for the non-life insurance companies.First,carry on the capitalization management on the acquirement cost of policies,and figure out,with reason,the distribution of selling costs in different periods.Second,with the use of concepts of different insurance periods,analyze and re-compose the operation data of insurances,and evaluate the insurance operation and performance from different perspectives.Finally, refer to the functional proposal of the new model and its applications in practices.The fourth chapter comes out with the strengths of the new model,its application bases and future developments.