Analysis Of Chinese Property Insurance Companies On Competitiveness

As China opening its insurance market after resuming its operations in the insurance industry,more and more foreign property insurance companies have entered our market.Chinese property insurance companies have also been established.So the property insurance market in China has developed rapidly,and premium income has grown rapidly.By the end of 2017,there have been more than 80 property insurance companies when the original insurance premium income having reached more than 1 trillion yuan.These companies face great challenges while having great development opportunities.Through analyzing the competitiveness of Chinese current property insurance market,we can quickly understand the development status of each company and accurately identify the factors that affect competition.It can provide effective countermeasures to improve the competitiveness of property insurance companies,thereby increasing the vitality of the property insurance market.This article firstly introduced the current major theoretical and research status of competitiveness.Integrating the current research situation of scholars,we believe that the competitiveness of companies in the property insurance market in China can be compared from the perspectives of operating capability,profitability,risk management capabilities and potential development capabilities,and select 14 indicators from them.In order to reduce the possible impact of the absolute value,the indicator uses the ratio or average value to establish an index system to evaluate the competitiveness of the property insurance companies.By comparing a series of research methods,we choose factor analysis method which is the most suitable method to deal with the problem.After removing the unsuitable company,we selected the most suitable 54 property insurance companies as research samples.From the information disclosure of companies in 2016 and the data collected by the China Insurance Regulatory Commission website,four factors affecting the competitiveness of property and casualty insurance companies have been empirically extracted and named as the profit factor,capital utilization factor,per capita productivity factor,and soundness factor.Then we calculate the scores of each property company's factor and rank the property company based on the scores.In the ranking of profitability factors,PICC ranked first with 1.61 points,while Zheshang Property Insurance ranked last with-3.02 points.In the use factor ranking of the capital,PICC still ranked first with a score of 2.49,and XL Insurance ranked last with a score of-1.63.The per capita productivity factor ranked Ambang Property Insurance ranked first with 5.79,while PICC ranked first with-1.14.The stability factor ranks the best performance of Hengbang Property Insurance with a score of 3.76,Zurich General Insurance ranks the final with a score of-1.23.Subsequently,according to the factor scores,the company's comprehensive scores and rankings are calculated.Anbang Property Insurance,PICC and Pingan Property Insurance have the most comprehensive competitiveness.The weakest competitive property companies are Sompo Japan Insuranc,Huahai Property Insurance and XL Insurance.After ranking 54 companies,we focused on whether there are differences between Chinese and foreign-funded property insurance companies.We analyzed in detail the top three and the last three property insurance companies and obtained the following conclusions:Firstly,the four factors extracted have a significant impact on the property companies'competitiveness.Among them,the profitability factor has the greatest impact on competitiveness.Secondly,the average competitiveness of Chinese-funded property insurance companies is better than that of foreign-funded companies,only in the respect of per capita production is worse.Thirdly,Chinese large-scale property insurance companies have obvious advantages in competitiveness;Fourthly,small-sized companies with clear market positioning or large amount of financing have outstanding competitiveness,and small and medium-sized companies with major risk accidents or narrow operating scope have lower competitiveness.At the end of the article,on the basis of empirical results,we propose strategies to enhance competitiveness for each factor.