Performance Evaluation Of China’s Insurance Companies Based On Comprehensive Risk Management Research

Since the recovery of the domestic insurance business in1980, China’s insurance industry has been rapidly developed, the development direction of China insurance companies were constantly adjusted and improved. A series of financial crisis let us realize that practices such as pursuing of premium income, market share and size of the company have been unable to adapt to the requirements of the external economic environment and internal self-development. As a special industry engaged in risk, the object of insurance business should be ensuring stability while improving efficiency. Implement comprehensive risk management was imperative, and the performance evaluation was a concrete manifestation of business objectives. In this background, performance evaluation of China’s insurance companies based on comprehensive risk management research has certain significance.The paper presented two enlightenments of comprehensive risk management philosophy on performance evaluation of China’s insurance companies, based on comprehensive risk management concept, compared performance evaluation indicators, considered availability and representativeness of indicators, ultimately selected14evaluation indicators. And then this article according to the Yearbook of China Insurance, used factor analysis methods to analyze the performance of96sample insurance companies, and also analyzed property insurance companies and life insurance companies, found that the factors affecting the performance of life insurance companies basically were the ability to grow, the risk management capability, profitability, personnel and capital structure, solvency; and factors affecting the performance of the property insurance companies basically were the personnel and capital structure, risk management capability, operating efficiency, growth capacity and solvency. Finally, the paper gives some suggestions based on the conclusions of empirical part and the reality of our country.There are three differences of this article from other researches. First, this article presented two enlightenments of comprehensive risk management philosophy on performance evaluation of China’s insurance companies. Second, this article tried to blend comprehensive risk management philosophy into the performance evaluation system of insurance company. Third, selected a sample of insurance companies up to96, including life insurance companies, property insurance and group insurance companies in types of insurance, contained Chinese-funded insurance companies, joint-venture insurance companies and foreign insurance companies in the capital property, and used the latest data, to make the performance evaluation of China’s insurance companies in this article more comprehensive, reliable and referential.