Evaluation Analysis Of Health Insurance Companies Value Based On MCEV Method

There are now 7 professional health insurance companies in China.The business of 7 companies marks that China's health insurance market has entered the track of professional operation.In the development of health insurance companies,in order to better management,it is necessary to adopt a value management model for the stable development of the company.From the manager's point of view,a reasonable assessment of the company's value can be used as an important indicator of performance appraisal.Through value appraisal,managers can understand what factors the company's business value is driven by.From the perspective of regulators,in order to maintain a fair competition environment and consumer rights in the market,it is also necessary to understand the value of the company.From the perspective of shareholders,the insurance industry has set off a wave of mergers and acquisitions.As competition intensifies or solvency is insufficient,mergers and acquisitions may occur.At what price mergers and acquisitions,shareholders need to understand the value of the company.From an investor's point of view,investors who want to invest in a health insurance company must understand the company's value in order to make better investment decisions.Because of this,it is necessary to evaluate the value of health insurance companies reasonably and accurately for the development of professional health insurance companies in China.China's life insurance company discloses the embedded value according to the requirements of the China Insurance Regulatory Commission.The application of embedded value is a major step forward in the value assessment of life insurance companies.However,there are many problems in evaluating the embedded value.It is difficult to be evaluated by actuarial institutions and investors using a single risk discount rate to discount the expected cash flow.As the financial market becomes more and more complex,the defects of the embedded value method become more and more prominent.In this context,the new evaluation method market consensus embedded value method(MCEV)has been recognized by more and more insurance companies.This paper first introduces the value evaluation methods of insurance companies in detail.The common evaluation methods for assessing the value of health insurance are present value method,market method and embedded value method.The Market Consistent Embedded Value Method(MCEV)is an improvement based on embedded value and can more reasonably assess the liability of insurance companies.This method has been recognized by more and more insurance companies and investors.Then,this paper combs the current development status of China's commercial health insurance and the status quo of health insurance company value evaluation,and analyzes the shortcomings of China's insurance companies in value evaluation.This paper introduces the European assessment method,the market consensus embedded value method(MCEV),and the value analysis of the long-term health insurance of China's health insurance companies.When assessing the market-consistent embedded value of the long-term health insurance business,it is necessary to make actuarial assumptions on some parameters..After the market consensus value implies the health insurance business,the sensitivity analysis of its value is further carried out to facilitate managers to understand the company's risks and management decisions.Finally,this paper introduces the problems encountered by China's health insurance in the application of the market's consistent embedded value.At present,the basic data of China's health insurance companies is insufficient,the actuarial staff is lacking,and the system is not perfect.This paper puts forward corresponding countermeasures.Under the continuous improvement of China's capital market,it has made a prospect for the consistent embedded value of China's health insurance companies.