A Study On The Profit Pattern Of Chinese Insurance Companies Under The Revolution Of Insurance Accounting

With the accelerating of the globalization of world economy,international movement of capital has becoming increasingly frequent,but the difference of accounting standard inhibits further exchange of capital,especially in the industry of insurance.In order to fix this problem,many countries hope establishing a set of universal accounting standard in the system of international finance reporting standards and our country devotes itself to the establishment of this standard.However,the progress is very slow due to the complexity and specialty.In 2006,the Ministry of Finance carried out Accounting Standards for Business Enterprises in which there are some stipulations on insurance accounting.But the standards are not enforced very well so that China Insurance Regulatory Commission and the Ministry of Finance carried out a series of stipulations on insurance accounting improving and completing insurance accounting in China.The most important is Accounting Standards Interpretation No.2 and The relevant Accounting Rules of Insurance Contracts which were enacted in 2009 and guide the action in Significant insurance risk test and Spin-off of the insurance contracts and policy acquisition costs will be included in cost.In this article,the subject is the influence of the revolution of insurance accounting on the profit pattern of Chinese insurance firms,and it is discussed that how and to what extent the revolution affects insurance companies,and then we provide some constructive suggestions.In the research,we discover that the revolution of insurance accounting have significant effect on premium income,market shares,the development of insurance goods,sales pattern,net earnings and investment portfolio.This article has five sections.The first section introduces the intention,background and meaning of the topic and depicts relative national and international literature,the content of the topic and methodology.The second section discusses the history,characteristics and the effects of insurance accounting revolution.The third section is the methodology of the profit pattern of insurance companies,which presents the conception,development of current situation of the profit pattern and explores the effect of accounting revolution on insurance firms.The forth section is case analysis,which is main section of this article.This section analyzes several major insurance firms in A+H stocks,we,at first,study the gross reaction of the capital market to the revolution,and then we studyspecific influences in different fields according to different contents in the revolution.Last but not least,we offer some policy suggestions which are got in different specific cases and these suggestions are constructive.This article studies some specific cases and provides some views and opinions on the problem how to improve and complete the business structure and how to make insurance companies more competent.