Research On The Business Structure Adjustment Of Chinese Life Insurance Companies

Diversification of risks and loss compensation is a unique and core function of the insurance industry,and it is also the cornerstone of the existence and development of insurance.The rationalization of the life insurance business structure is the key to the stable development of life insurance companies,and also the basis for the existence and development of the industry.Since 2012,China Banking and Insurance Regulatory Commission(CBIRC)has successively released new policies on the use of insurance funds to bring universal insurance into a high-speed development stage.After the regulatory agency allowed a bank to cooperate with multiple insurance companies in 2003,the silver mail agency channel has rapidly grown into the most important insurance sales channel in China.However,investment-oriented and savings-oriented products with shorter main sales periods further led to the explosive growth of investment-oriented products.The structure of China's life insurance business has also changed: premium income from investment products has gradually surpassed traditional life insurance and has become the market-leading product.The silver post agency channel has replaced the throne of personal agency channels,and the number of short-term and non-payment insurances has gradually increased.Since the end of 2016,the CIRC has issued several documents emphasizing the main tone of the industry,"insurance surname insurance".Affected by the China Insurance Regulatory Commission[2017]No.134,the life insurance company's start was fully met in 2018,and the negative growth of the premium in the first month reached about 25%.The life insurance industry has doubts about whether the transformation and upgrading can make the industry sustainable and stable development.Therefore,research on life insurance products The direction of business structure adjustment is particularly important.The level of profit of a life insurance company is a practical and easy-to-quantify indicator to measure whether the company can continue to operate stably.Therefore,this paper uses the non-equilibrium panel analysis method to study the impact of the business structure adjustment of 51 life insurance companies on profitability in the 7 years from 2012 to 2018.From the perspective of different types of life insurance business structure,namely product business structure,term business structure and channel business structure,the relationship between various business structure types and profit margins is analyzed.The study found significant positive correlations between profitable products,long-term business,personal business,and personal agency channels and profit margins,while savings-type products,investment products,short-term business and group business showed significant correlations with profit margins Negative correlation.This shows that the steady development of life insurance companies can be achieved by optimizing the business structure to a certain extent,that is,the adjustment of the business structure of life insurance companies should focus on the development of long-term business and guaranteed products,while focusing on the further improvement of personal business and personal agency channels.