Research on the Performance of Property Insurance Lines in China
|School||Dongbei University of Finance|
|Keywords||Property Insurance Performance Data Envenlopement Analysis Non-Discretionary Variable Model|
In the past30years, the domestic property insurance industry maintained a rapid growth, and there are many significant changes in the property insurance structure, but continued financial loss phenomenon is still a problem, vehicle insurance loss ratio is too high for the largest business, at the same time corporation property insurance proportion is declining, other insurance business are also encounter many kinds of difficulties in the long run. In view of so much problem as stated above, China Insurance Regulatory Commission draw up<The development of China’s insurance industry Eleventh Five-Year Plan>. In the plan, China Insurance Regulatory Commission put forward the basic principle in the development of China’s insurance industry--optimize product structure, expand service areas, cultivate new business growth point. In the twelfth Five-Year Plan further pointed out that "adhere to promote the structural optimization and upgrading as an important focal point to accelerate the transformation of the mode of development of the insurance industry","property insurance industry should optimize the vehicle insurance business, and actively explore other insurance business,...". The development strategy of property insurance industry structure adjusting need to be further implemented. Therefore we can concluded the effectiveness of the" structural adjustment "of the property insurance industry in the Eleventh Five-Year Plan period, and specify direction for "structural optimization upgrade" goals in Twelfth Five-Year Plan period. This article is based on this background.In the "Eleventh Five-Year Plan" period, the insurance industry in Dalian successfully completed predetermined development goals. CIRC structural adjustment policies received remarkable results, and the property insurance companies achieve profitability for the first time. In2011, in the " Twelfth Five-Year Plan" period, Dalian Insurance Regulatory Commission proposed the property insurance companies should vigorously promote the development of vulnerable insurance, improve product innovation and underwriting mechanism, vigorously develop consumer-related insurance business and support the insurance funds to invest in urban infrastructure construction; Under the guides of the revitalization of old industrial bases in northeast China","Liaoning coastal economic zone development plan" of the national strategy and the construction of Dalian City "three centers policy" ideas, promote the insurance industry and expand the scope, focus on protecting the insured person’s interests. In this paper, the author take Dalian property insurance industry as an example, study the property insurance industry performance and carry out empirical studies. Since2006, property insurance industry in Dalian went through several stages "enhance the development capacity-optimize the quality of development-structural adjustment efficiency approve", provided service for local economic and social at the same time, achieved its own sound and rapid development. In this paper, the author using quantitative research methods to analyze the performance of property insurance industry, to identify the main factors affecting the performance,and further put forward a clear direction to improve performance. All these efforts are of great significance for China’s insurance industry to implement the policy" transfering mode, adjusting the structure, preventing risk, and promoting development".In this paper, the author uses Discretionary Variable Model1which is one method of the data envelopment analysis method to analyze the performance of property insurance industry; and used "coefficient of variation" indicators to measure performance in each year between the smooth and balance between companies; defined "Influence Degree of Performance Index" to examine the impact of various performance indicators.Through research, author draw the following conclusions:1. Conclusions of the study on the insurance perspective(1) Insurance Regulatory Commission issued the "tructural adjustment" and "structural optimization and upgrading" policies achieved some success, partly changed the vehicle insurance dominate the situation, but the ideal goal of the development strategy is still a long way to go.(2) Claim expenses is the biggest influence factors of most insurance business performance, the number of policy is the least influence factors of most insurance business performance.Reduce claims expenses, pursue of underwriting quality rather than quantity should be the guidelines for the operation of most property insurance company.(3) Vehicle insurance in each company and each year is the most stable and balance business, reflecting the vehicle insurance has a higher maturity than other types of insurance, as well as the insurance universal attention and dependence.2. Conclusions of the study on the corporation perspectiveIn addition to the PICC and Hua An, the best performance of insurance business of all other companies are vehicle insurance, marine insurance is the best and most stable insurance business of PICC and Hua An Insurance Company. As for the Freight Transport Insurance business, China united property insurance company and Sunshine insurance company are relatively worse in operating conditions than other companies; the6-year-stability and operating results of PICC and Du-Bang property insurance are relatively worse than other companies; there are5companies which life insurance business operating conditions are not ideal; and there are high volatility and poor performance of3companies in the operating conditions of the marine insurance.Overall, vehicle insurance is the largest insurance companies, because each company’s operating capacity and operating priorities are different, the operating conditions of the other four types of insurance companies presents an inconsistent state. On the whole, the claim expenses is one of the main factors affecting the performance of the insurance companies in Dalian.Finally, on the basis of the conclusions, this paper puts forward to improve performance and the relevant recommendations to improve the insurance structure as follows:all property insurance companies should be clearly realize the main reason for the fluctuation of the performance of various types of insurance business, and then strengthen risk management; the regulatory authorities should propose that all property insurance companies should sustain the development of advantageous insurance business and at the same time focus on the development of new types of insurance and improvement vulnerable types of insurance performance, regulatory authorities should be urged to insurance companies a clear indicator of the direction of improvement, in order to achieve the balanced development of the property insurance industry, to promote the improvement of property insurance industry.