Official Release of the "2019 China Insurance Company Competitiveness Evaluation Research Report"

On November 13, 2019, the "2019 China Insurance Company Competitiveness Evaluation Research Report" was officially released. This is the 9-th yearly report series and it represents the continual effort by the research group "Insurance Company Competitiveness Evaluation Research" at the China Institute for Actuarial Science (CIAS).

Under the support and guidance of the Ministry of Education and the Central University of Finance and Economics,CIASis charged with forging forward, embraces innovation, and increases influence in the industry and academia. In August 2010, the research group "Insurance Company Competitiveness Evaluation Research" was established at CIAS involving key members Kou Yefu, Chen Hui, Zhang Ning, Zhou Xianhua, Zheng Sujin and others. Since then, the research group, together with involving about 20 graduate students to collect and collate the relevant data, have been producing this report annually.

The research group "Insurance Company Competitiveness Evaluation Research" develops an evaluation index system and evaluation method for evaluating competitiveness among insurance companies. By exploiting modern multivariate statistical methods and based entirely on quantitative analysis, the research group has conducted a comprehensive evaluation study for the insurance companies, together with their evaluation scores and rankings based on five primary indicators (such as profitability, capital management ability, operating ability, risk management ability, and development potential).

While in China there were 91 life insurance companies and 88 property insurance companies by the end of 2018, the 2019 study was applied to 60 life insurance companies and 64 property insurance companies in China, after excluding companies with less than 3 years of establishment, or companies with abnormal data or no annual information disclosure report.

Chinese Life Insurance Companies Comprehensive Competitiveness Evaluation Results

After preprocessing the data, we then use multivariate statistical methods such as the principal component analysis and the factor analysis to analyze 60 life insurance companies’ 58 secondary indices to produce the ranking and score of each insurance company's comprehensive competitiveness.The results are shown in the table below:

Table 1: Rankings and scores of the comprehensive competitiveness of Chinese life insurance companies in 2018

Kindly refer to the "2019 China Insurance Company Competitiveness Evaluation Research Report" for evaluation rankings and scores based on primary indicators including profitability, capital management ability, operating ability, risk management ability, and development potential of life insurance companies.

Chinese Property & Casualty Insurance Companies Comprehensive Competitiveness Evaluation Results

The evaluation methodology is similarly applied to the 64 property & casualty companies except it is based on 54 secondary indices. The results of the ranking and score is shown in the following table:

Table 2: Rankings and scores of comprehensive competitiveness of

Chinese property insurance companies in 2018

Kindly refer to the "2019 China Insurance Company Competitiveness Evaluation Research Report" for the evaluation rankings and scores based on primary indicators including profitability, capital management ability, operating ability, risk management ability, and development potential of property & casualty insurance companies,

Special instructions

1. This study uses available disclosure data as much as possible, with emphasis on data integrity. Appropriate adjustment (with full annotations) to the indicators are made on those companies that exhibits abnormality or error in annual disclosure report

2. The analysis of this report relied on the publicly available information and members of the research group conducted the analysis. We do not guarantee the completeness and correctness of the above information.CIASis not liable for any consequences arising from the use of this report. This is only used for academic research, information exchange and reference within academia and industry. The analysis of this study is the personal views of the members of the research group, and does not represent the view ofCIAS.

For any question or dispute, please contact us either by phone or email.

Contact Information:kouyefu@cufe.edu.cn;(010)62288159-802

Kou Yefu

Group leader, "Insurance Company Competitiveness Evaluation Research" group

Director, Insurance Data Documentation Center,CIAS,Central University of Finance and Economics