Research On The Profit Model Of The Life Insurance Industry

Since the reform and opening up, China’s life insurance industry market has undergone a positive and profound changes, to achieve leapfrog development.Life insurance industry as an important part of the financial industry, its healthy and sustainable development of the whole national economy plays an important role; the same time, most of the insurance industry and the people living life is closely related to the sustainable development of the life insurance industry has conducive to promoting the improvement of the social security system and maintaining social stability.Therefore, our current operating performance and profit model of life insurance companies conduct objective and comprehensive analysis and evaluation,and to develop effective policy recommendations to improve the performance of China’s life insurance business and the life insurance business profit model optimization, undoubtedly has a great theory value and practical significance.This paper reviews the domestic and foreign scholars for the life insurance industry profit model study, based on the operating performance of the life insurance industry research, select and operating performance indicators related to the profit model analysis. Firstly, the second chapter using Eviews software to measure the size of the company, the proportion of investment assets, insurance loss ratio, premium growth and underwriting profitability of these variables on the life insurance company’s operating performance impact. At the end of this part, explained the relationship between the life insurance industry Business Performance and profit model, leads to the contents of Chapter III, laid the foundation for profitable expansion mode content. Based on the analysis combined with the second chapter operating performance indicators, from the "Mountain School" theory and "Shanghai" two theoretical perspective empirical analysis respectively, selected premium growth,underwriting profitability, market share, return on investment and the proportion of investment assets of the five indicators as explanatory variables, the net profit margin equity as explanatory variables for analysis. Final conclusion of this paper is asset size,underwriting profitability and premium income growth of these three indicators and life insurance company’s operating performance levels showed a positive relationship,the insurance loss ratio and operating performance was negatively correlated, but the proportion of investment assets on Operating Performance the impact is not obvious.On the basis of the study sample operating performance on equity net profit margin will be interpreted as a variable sample to measure the company’s profitability, choose premium growth, underwriting profitability, market share, return on investment and the proportion of investment assets of these five factors as an explanatory variable regression analysis, build related models, respectively on China life insurancecompany in line with "mountain pie" or "Shanghai" theory of the empirical analysis,the results showed that: premium growth, underwriting profitability, return on investment and the proportion of investment assets equity net profit margin of these five indicators showed a significant positive correlation, that these indicators the greater the value, the greater the interest in net profit margin. From the empirical part,the profit model of the life insurance industry in line with the "Shanghai" theory, that is, profit model from the previous model gradually transformed into premium investment revenue model, the company’s profit contribution rate of investment business more than insurance business.