Study On Operating Conditions And Financial Risk Control Of Ping An Insurance (Group) Co.of China Ltd

The continuous development of the insurance industry stems from the improvement of the economic level and the frequent natural disasters around the world.After entering the 21 st century,the insurance industry has gradually transformed from the traditional and single business model to the financial integration model.The new business model and organizational structure have brought various opportunities for the development of insurance companies.The insurance industry has its own special features compared to the general industry: the insurance cost has variability in the future,the insurance industry business object has risks,and the insurance liability has continuity.The business process of insurance companies is risky,and the prevention of financial risks is a necessary condition for the insurance industry to achieve long-term stable operations,and it is also an inherent requirement for business operations.Ping An,which was established in 1988,is the first joint-stock insurance company in China.It currently has a full financial business license and has become one of the few financial companies in China that can provide insurance,investment,and banking services to users at the same time.Through continuous technological innovation,Ping An strives to provide its customers with financial services that seamlessly connect with everyday life,and ultimately achieves the grand goal of being the “ leading international personal financial service provider”.This article takes Ping An as the research object,and on the basis of learning from domestic and foreign companies' financial risk management theory research and practical exploration results,it conducts in-depth analysis of its main business,customer operations,capital structure,and cash flow,and from the debt repayment The financial situation of China Ping An was discussed in terms of profit,operation,and growth,revealing the risks that Ping An had in the financing,investment,underwriting,claims,and other business links,and then proposed corresponding countermeasures.The main conclusions are: First,the core of the insurance business is to unite the power of the crowd to transfer risk losses that may occur in the future.Ping An's main business is insurance,and the essence of the insurance industry is to transfer risk losses that may occur in the future.This determines that Ping An has always been associated with risk.High risk is a feature of the insurance industry.China Ping An has a relatively deep understanding of risks,that is,the significant influence of risks on operations,and through related measures to transform risks into opportunities to increase market competitiveness.Second,in recent years,Ping An's main profitable business remained insurance business.The net profit contribution rate of life insurance business was the largest,while the net profit growth of banking business slowed down,and the net profit of asset management business even declined,apart from China's economic restructuring.In addition to the real economy slowdown caused by the upgrade,the continuous turmoil in the international financial market has also contributed to the slowdown in the performance of the financial industry in China.However,Ping An of China has diversified its business operations,and the coordinated effect of this move has enabled its overall performance to maintain steady growth.Third,in recent years,Ping An of China has been operating in a more aggressive,high-risk,and high-yield manner,and has achieved results in the gradual realization of customer value,gradual optimization of asset structure,and gradual enhancement of financial operations and risk control capabilities.There are also hidden risks of financial risks.It is still necessary to maintain high vigilance against and protection against liquidity risks and exchange rate risks,especially the large number of cash outflows and changes in fair value.Fourth,based on the current status of China's Ping An operations and financial operations,as well as hidden risks in the financial risks of operations,Ping An should be well-targeted in risk prevention and control from the aspects of financing,investment,underwriting,and claims.It should be noted that with the continuous improvement of relevant national policies and the dynamic changes in market demand,Ping An of China will face greater opportunities and challenges.Only by proactively adapting to various national policies and market changes,will it continuously improve its own risk control strategies.China Ping An can maintain sustainable development in the fierce market competition.