The Impact Of Epidemic Impact And Internet Insurance On Risk Taking Of Life Insurance Companies In China

The outbreak of COVID-19 at the end of 2019 not only affected our economic development and stability,but also threatened the operation stability of life insurance companies,which made higher requirements for the risk bearing capacity of life insurance companies.In order to cope with the sudden impact of the epidemic,various life insurance companies quickly devoted themselves to the application and development of Internet insurance,so as to stabilize their business objectives and improve their anti-impact ability.In recent years,life insurance companies have experienced the impact of COVID-19 and the booming development of Internet insurance,and their own risk bearing capacity has been greatly affected.However,there is no specific quantitative standard for the impact of COVID-19 and Internet insurance on the risk bearing capacity of life insurance companies.Since the outbreak of COVID-19 is an unexpected public event,Previous studies on life insurance companies’ risktaking focused mainly on corporate governance and ownership structure,or looked separately at the impact of Internet insurance on insurance companies’ risk-taking,while there were few studies on the impact of the epidemic on insurance companies’ risk-taking.Therefore,this paper combined the epidemic impact and Internet insurance to study the risk bearing capacity of life insurance companies,supplementing the lack of research on risk bearing of life insurance companies.At the same time,it comprehensively considers the impact of the epidemic and Internet insurance on the risk taking of insurance companies,which is innovative to a certain extent.By studying the changes of risk bearing capacity of 91 life insurance companies before and after the epidemic and the Internet index of each company,this paper uses differential model and Internet insurance index to intuitively quantify the impact of the epidemic impact and Internet insurance on risk bearing capacity.(1)The DID model was used for benchmark test to analyze the impact of emergencies on underwriting risk,investment risk and leverage risk of life insurance companies,and to observe whether the regression results were significant;(2)Parallel trend test with dynamic DID model was used to verify whether there were differences in the level of risk taking between control group and treatment group before the epidemic impact;(3)The time of epidemic impact was fabricated,and 2019 was used as the time dummy variable for regression to observe whether the regression results were significant;(4)Construct a triple interaction term,add the Internet insurance index into the DID model for regression,and observe whether the regression results are significant.If the significant is negative,the Internet insurance effectively alleviates the negative impact of the epidemic on life insurance companies.The conclusions of this study are as follows :(1)The regression results of underwriting risk,investment risk and leverage risk in the treatment group affected by COVID-19 are significantly positive,and the parallel trend test and placebo test are passed,proving that the COVID-19 impact increases underwriting risk,investment risk and leverage risk of life insurance companies,thus leading to an increase in risk taking of life insurance companies.(2)After adding the Internet insurance index,the coefficients of underwriting risk,investment risk and leverage risk in the model regression structure are significantly negative,which proves that Internet insurance alleviates the negative impact of the novel coronavirus pandemic on the risk taking of life insurance companies.The conclusions of this paper provide useful enlightenment for life insurance companies to develop Internet insurance to cope with public emergencies and maintain the stability of life insurance companies.