A Comparative Study Of Chinese Life Nsurance Companies’ Profitability Model And Influences

Since reform and opening up, along with the rapid growth of economy in our country, the domestic life insurance also got rapid development, the premium scale continues to increase. However in recent years, with frequent natural disasters and the instability of the financial market, the overall profitability of life insurance needs to be further improved. As of late 2013, whole life insurance industry profitability is still not optimistic, and even many small life insurance company has not been a turn round in the home. In view of the overall profitability of China’s life insurance, profit ability needs to improve the status quo, in this paper, the domestic life insurance companies, profit ability and its influencing factors were studied, in order to find the present development of life insurance profit pattern, and how to improve its profitability, explore the suitable profit model are also proposed.On the research methods, this paper adopted the combination of qualitative analysis and quantitative analysis of research methods. Qualitative analysis method is mainly manifested in the life insurance company’s profitability and profit model of induction and summary, including the concept of profitability and profit model, the factors influencing life insurance profit ability, life insurance, profit model, etc; In addition, for the life insurance company how to search for suitable for their own profit model and future life insurance profit model, the analysis of problems, such as most also USES the method of qualitative analysis and theoretical generalization. In the aspect of quantitative analysis, this paper on the basis of qualitative analysis and the related theoretical research, mainly through the empirical research on the influencing factors of life insurance profitability is analyzed. In this paper, based on established time, the domestic life insurance companies is marked as "new life insurance company" and "old life insurance company". Using the two categories of life insurance company’s annual financial data, including operating profit, insurance business income, investment income, payment and loan payments, constant parameter panel data model is set up respectively and mixed effects model, variable intercept panel and the two companies on the impact of various factors on profitability effect is analyzed. In addition, the policy recommendations section, through the analysis of the results of empirical analysis, this paper attempts to summarize the present profit model of life insurance in our country, reflects the qualitative analysis and quantitative analysis of the supplement each other, tightly coupled relationships.From the point of the research results, two categories of life insurance company paid insurance business income and expenditure have has a significant influence on life insurance company’s underwriting profit; And termination of two types of life insurance company underwriting profit significantly different, the influence of the new insurance company to its termination underwriting profit and no significant influence. This suggests that, compared with the old life insurance companies, the newly established small and medium-sized insurance companies on the underwriting profit source is relatively conservative and cautious. In addition, the life insurance company investment income to operating profit contribution is quite large, the underwriting profit contribution to operating profit is very small, or even negative. This shows that China’s life insurance companies operating profit mainly comes from investment income, but also proved that the "Shanghai style" theory point of view, i.e., the insurance company as a financial institution, should notice to use of funds, to get more investment returns. Can be seen from the conclusion that Chinese life insurance companies in the business models on most of them adopt a more radical.