The Construction And Application Of China Life Insurance Companies’Competitiveness Evaluation System

With the end of the transitional period of joining in the WTO, China has fully opened its financial market, many foreign life insurance companies which have advanced management concepts and scientific management mode have entered China’s life insurance market, to the domestic life insurance companies, it’s a serious challenge. So, to assess the competitiveness of China’s life insurance companies objectively, and guide insurance companies to seize the opportunity, to quickly improve its competitiveness, not only has great significance for the development of the life insurance industry, but also has global significance for deepening financial reform and improving China’s comprehensive national strength.In the life insurance market, the company increasing every year, the market structure optimized gradually, and the premium income increased steadily. Overall, the domestic life insurance companies have entered to the stock market positively, and the foreign life insurance companies have their business expanded into our life insurance market, so, the market shows a good situation of fair competition.This paper based on the theory of enterprises’competitiveness, combined with the condition of life insurance companies, and built an evaluating system of life insurance companies’competitiveness. The index system includes six aspects, which is the ability of market share, profitability, solvency, the capacity of development, and so on. This paper evaluated13life insurance companies’competitiveness apply the factor analysis method, by comparing the empirical results, finding out their advantages and disadvantages.Finally, the paper’s conclusions are as follows:the surrender rate, the management scale coefficient, the rate of reserve extraction, and the sustainable growth rate are important to the index system. The domestic life insurance companies are more competitive than foreign life insurance companies. The advantage of domestic companies is the capacity of occupying market and solvency, the foreign life insurance company’s strengths are reflected in the higher profitability; The AIA Guangdong Branch and the Manulife-Sinochem’disadvantage is in the ability of market share; In the aspect of the enterprise growth, the Generali China Life Insurance and the China Pacific Life Insurance perform not good; The NCI and the Generali China Life Insurance’s profitability is lower than other companies; The poor solvency is the disadvantage of the NCI and the AIA Beijing Branch.To enhance the competitiveness of life insurance companies, this paper proposed some countermeasures and proposals from the perspective of improving its service quality, expanding its service areas, increasing innovation, and establishing a good corporate image, and so on.