The Research of Chinese Life Insurance Companies’ Operating Performance

Abstract

The study of operating efficiency of life insurance companies has been the focus of many scholars, and the two main research methods are subjective empowerment and objective empowerment at present. To address this issue and also to combine the operational characteristics of life insurance companies in China. This article establishes a relative and objective comprehensive evaluation index system and uses factor analysis to study the operational efficiency of life insurance companies in China. Twenty-six life insurance companies with two complete operating cycles in the Chinese life insurance market as of 2020 were selected as the research sample. Thirteen indicators were selected to construct a cross-sectional data system to evaluate the operational efficiency of life insurance companies. The results show that Chinese life insurance companies are comparable to joint venture life insurance companies in terms of overall score, business capacity and profitability, with a relatively even distribution of rankings; while joint venture companies generally lag behind Chinese companies in terms of company size and strength and solvency.