Life Insurance In China Research Articles

Multilayer networks in the frequency domain: Measuring volatility connectedness among Chinese financial institutions

We construct multilayer networks in the frequency domain, including short-term, medium-term, and long-term connectedness networks, to examine the volatility connectedness among Chinese financial institutions. We investigate the network topology of intra-layer and inter-layer by the proposed method on the static and dynamic samples. We observe that the volatility connectedness among financial institutions is heterogeneous in the frequency domain. Specifically, we find that long-term connectedness among financial institutions rises significantly during crisis events. In addition, we note that China Life Insurance, Ping An Bank, and most securities tend to play risk emitters at a specific layer during the period of stress rise. Finally, we find that the stock market crisis in 2015 changed the edge structure among financial institutions in the short-term and long-term. Our work provides a new perspective for financial connectedness and risk contagion.

Does subjective life expectancy matter in purchasing life insurance among middle-aged and older adult? Evidence from China.

Population-wide increase in life expectancy is a source of aggregate longevity risk. Life insurance is a natural instrument to manage the risk. Previous studies used chronological age to examine the relationship between aging and life insurance purchase, which ignored the impact of subjective life expectancy-the real perception of remaining time. Therefore, this study aims to fill the lack in this area and to explore in depth the relationship between subjective life expectancy and purchasing life insurance among middle-aged and older adult at micro perspective. This paper utilizes data from the China Health and Retirement Longitudinal Study (CHARLS) over a period of 4 years to construct both Probit and Tobit models. The findings reveal that subjective life expectancy positively affects the likelihood of participation and the extent of life insurance among the middle-aged and older adult population in China. IV model estimation results show good robustness of the results. Meanwhile, there is also heterogeneity in the effect with respect to gender, hukou, education and wealth. The findings provide new perspective to explain the subjective motivation of purchasing life insurance in China.

The Impact of Interest Rate Marketization on Chinas Life Insurance Products

The interest rate is a crucial macroeconomic variable, and the marketization of interest rates is one of the fundamental reforms in the economic and financial domains. China continues to promote market-oriented interest rate reform in accordance with the Central Committee of the Communist Party of China and the State Council's strategic deployment, which not only conforms to China's national conditions but also essentially fulfills international norms. While deregulating interest rates in an orderly manner, it places a premium on building and enhancing a market-based interest rate system in which rates are determined by market supply and demand. The People's Bank of China employs monetary policy instruments to influence market interest rates and maximizes the regulatory function of interest rates for macroeconomic activities. This article seeks to assess the issues China's life insurance industry faces from three perspectives: power, product structure, and depth and density. The study then analyzes the impact of marketization of interest rates on China's life insurance business and suggests countermeasures for China's life insurance companies.

Economic and climate policy uncertainty, geopolitical risk and life insurance premiums in China: A quantile ARDL approach

This study explores the asymmetric and nonlinear effects of economic policy uncertainty (EPU), climate policy uncertainty (CPU), and geopolitical risk (GPR) on China's life insurance premiums (LIP) by using Quantile Autoregressive Distributed Lag (QARDL) approach across different quantiles of LIP. The results show that EPU negatively affects LIP in most cases except the lowest quantiles, GPR has a negative influence among the higher quantiles, and the negative effects of CPU on LIP are significant mainly in higher quantiles. The findings suggest that investors and firms treat life insurance products as secure assets when policy instability and geopolitical issues become serious.

Research on Performance Evaluation of Life Insurance Industry in China based on Factor Analysis

In recent years, China's insurance industry has achieved rapid development and progress due to the support of national policies and the continuous adjustment of the social consumption structure, which indicates that more resources should flow to the life insurance industry but also faces great challenges. Therefore, this paper will analyze and evaluate the operating performance of current life insurance companies in China, and formulate effective policy suggestions. This paper introduces the research background and research meaning, selecting 25 2020 Chinese and foreign joint venture life insurance companies as the research sample, and from five aspects such as profitability, debt paying ability chosen from 20 indexes, set up the China life insurance business performance evaluation index system, through the principal component analysis (PCA), according to the common factor to explain the reasons for the influence of development conditions, Finally, combined with the factor ranking and the actual situation of China's insurance industry, the evaluation and analysis are carried out. The research results show that although China's insurance industry started late, the current development speed is objective. Small and medium-sized life insurance companies are also prominent in the overall ranking of business performance due to their operational flexibility and innovation. Based on the research results, the current problems of life insurance companies in China can be concluded, and reasonable suggestions can be put forward for further improving the business performance of life insurance companies.

An Empirical Study on the Equity Performance of China's Health Insurance Companies During the COVID-19 Pandemic-Based on Cases of Dominant Listed Companies.

The health insurance industry in China is undergoing great shocks and profound impacts induced by the worldwide COVID-19 pandemic. Taking for instance the three dominant listed companies, namely, China Life Insurance, Ping An Insurance, and Pacific Insurance, this paper investigates the equity performances of China's health insurance companies during the pandemic. We firstly construct a stock price forecasting methodology using the autoregressive integrated moving average, back propagation neural network, and long short-term memory (LSTM) neural network models. We then empirically study the stock price performances of the three listed companies and find out that the LSTM model does better than the other two based on the criteria of mean absolute error and mean square error. Finally, the above-mentioned models are used to predict the stock price performances of the three companies.

Analysis of Enterprise Profitability Based on Dupont Analysis Method -Taking China Life Insurance (Group) Company as an Example

Obtaining profits is the main purpose of enterprise development, and profitability is the core indicator for measuring the development status and prospects of enterprises. DuPont analysis method is a comprehensive and effective financial analysis method to evaluate the profitability of enterprises. This article will focus on DuPont analysis method, supplemented by factor analysis method and comparative analysis method to comprehensively analyze the profitability of China Life Insurance Co., Ltd. Analyze the advantages and disadvantages of its profitability, then, give some relevant reasonable suggestions.

중국생명보험시장의 고객만족과 보험 재구매에 관한 연구

중국생명보험시장의 고객만족과 보험 재구매에 관한 연구

Does COVID-2019 have an Impact on the Purchase Intention of Commercial Long-Term Care Insurance among the Elderly in China?

Purpose: As an important measure to alleviate long-term care (LTC) costs for the disabled due to the aging of the population, long-term care insurance (LTCI) system has been paid more attention in China. In addition to the government-led public LTCI system that has been piloted in cities such as Qingdao, Chongqing and Shanghai, health insurers such as the China Life Insurance Company are also experimenting with various types of commercial LTCI in the private market. However, the commercial LTCI market is developing very slowly due to public awareness and other reasons. On the other hand, COVID-2019 has had an impact on the cognition of the importance of long-term care for the elderly due to the fact that the death cases of COVID-2019 have been mainly concentrated in the elderly population with chronic diseases such as hypertension. Therefore, the purpose of this study is to explore the differences in the purchase intention of commercial LTCI among the elderly in two different periods: before and after the outbreak of COVID-2019. Methods: By using the Andersen behavioral model and two investigations in two different periods before and after the outbreak of COVID-2019, this study explores the impacts of COVID-2019 on the purchase intention of commercial LTCI. Results: Some significant discoveries were found. For example, 25.8% of interviewees showed purchase intention in LTCI in the time before the COVID-2019 outbreak, while this proportion increased to 37.6% after the COVID-2019 outbreak. People who were younger (OR = 2.128, before COVID-2019; OR = 1.875, after COVID-2019) or who had more education (OR = 1.502, before COVID-2019; OR = 2.218, after COVID-2019) were more interested in commercial LTCI. Conclusion: This study shows that COVID-2019 has had an obvious impact on the purchase intention of commercial LTCI, which provides some enlightenment for China to improve the LTCI system in the future, especially to accelerate the development of commercial LTCI. For example, it is essential to promote the importance of long-term care among the elderly in a focused and targeted way. In terms of the key target audience, it can be developed gradually from the groups with higher education levels and the middle elderly aged 45–64 years old.

Future investment value of China’s listed life insurance companies’ H shares from the perspective of secondary market

China’s life insurance industry has just started in the 1990s after the reform and opening up, and its development experience is obviously insufficient, and it has not gone through a very complete life insurance development cycle. No matter from the actuarial technology, the professional level of the agent, the popularization time of the agent system, or the management experience, it is far from the developed areas of the world’s life insurance industry. In addition, many professional investors are worried about the future prospects of China’s life insurance industry because of the long-term existence of a low interest rate environment. However, after reading detailed materials (research papers, books, reviews, etc.), the final conclusion of this report is different from that of other too cautious investors . This report holds that: the current situation and prospect of China’s life insurance H shares meet the conditions of Davis double-click, and the main investors in the secondary market will encounter a unique opportunity to obtain excess returns by investing in domestic insurance H shares. On the level of objective factors, we analyze from the following four aspects: (I) the potential demand for life insurance in China will continue to increase significantly in the future; (II) most of the representative life insurance companies in China have low valuations; (III) the possible style switching in China’s secondary market is conducive to the rise of blue chips such as life insurance companies; (IV) from the long-term perspective of history, the insurance index has significantly outperformed the Shanghai Composite Index, which represents the market. In terms of subjective factors, we consider them from the following four perspectives: (I) the development and problems of life insurance industry in Japan and Taiwan; (II) on the liability side, China’s life insurance industry vigorously develops new products with high business value, so as to resist the impact of low interest rates; (III) the diversification of asset allocation at the investment end of China’s life insurance industry can make the profit of life insurance industry not limited by the interest rate; (IV) the change of service quality at the supply side is conducive to the life insurance companies to tap the potential market demand in China.

Scale and Scope Economies in Chinese Life Insurance Industry

Using the Translog model and the data of all life insurance companies in China from 2012 to 2015, this paper analyzes the scale effect and scope effect in China's life insurance market. In this paper, the premium income of various types of insurance as the output of the company, rent and wages as input elements, Commission and commission expenditure, business and management fees as the operating costs of insurance companies. The results show that both large & medium-sized life insurance companies have economies of scale, and the scale effect of small life insurance companies is significantly stronger than that of large & medium-sized life insurance companies. In terms of scope effect, it is difficult to draw a unified conclusion from the 2012-2015 year's model results. According to the results of the model in 2015, ordinary life insurance and health insurance, health insurance and other insurance have cost-complementary effects.

An Ensemble Random Forest Algorithm for Insurance Big Data Analysis

Due to the imbalanced distribution of business data, missing user features, and many other reasons, directly using big data techniques on realistic business data tends to deviate from the business goals. It is difficult to model the insurance business data by classification algorithms, such as logistic regression and support vector machine (SVM). In this paper, we exploit a heuristic bootstrap sampling approach combined with the ensemble learning algorithm on the large-scale insurance business data mining, and propose an ensemble random forest algorithm that uses the parallel computing capability and memory-cache mechanism optimized by Spark. We collected the insurance business data from China Life Insurance Company to analyze the potential customers using the proposed algorithm. We use F-Measure and G-mean to evaluate the performance of the algorithm. Experiment result shows that the ensemble random forest algorithm outperformed SVM and other classification algorithms in both performance and accuracy within the imbalanced data, and it is useful for improving the accuracy of product marketing compared to the traditional artificial approach.

Taboo no more: a qualitative country institutional profile of life insurance in China and India

Purpose– This paper aims to compare the emergence and evolution of organizational fields through an analysis of the life insurance industries in two large emerging markets. Using institutional theory as a conceptual framework, we compare the regulatory, cognitive and normative dimensions of the life insurance industry in China and India.Design/methodology/approach– The authors introduce a qualitative variation of the country institutional profile (CIP) that has been traditionally implemented as a quantitative analytical tool used to describe differences in national environments. This newly proposed methodology captures the socially embedded aspects of the phenomenon more completely than commonly employed survey-based methodology.Findings– This analysis leads to a three-dimensional typology of constructs and themes within each national environment. These themes include the importance of regulation and protectionism, the domestic savings culture, family support structures and human capital development within the industry. The authors conclude by comparing these typologies to consider the implications for studying change in organizational fields across contexts.Originality/value– As the authors reflect on the evolution of organizational fields, they demonstrate how the interplay of historical factors and new global norms results in a negotiated stance between compliance with new norms and allegiance to local interests. In terms of methodological contribution, we show how the socially embedded aspects of the examined phenomenon are explored more completely by the proposed qualitative CIP than through its quantitative variation. This approach and the analysis illustrate a complex interplay of local and global norms within a selected industry that may be missed by other research methods.

The Value of Reverse Mortgage Loans: Case Study of the Chinese Market

This study contributes to addressing the problem of an aging population by providing important information that determines feasible monthly payments for the clients of Chinese reverse mortgage products and by promoting the implementation of reverse mortgages in China. The variables used in this study include mean values obtained from time series data, of the rate of increase of housing prices, and the probability value, interest rate, and mortality rate obtained through the geometric Brownian motion (GBM). For mortality rates, China Life Insurance female mortality rates (2000-2003) were used. This study aims to apply the main variables that affect reverse mortgage products in a monthly payment model based on Chinese financial market conditions, and determine loan values. In this study, Shanghai's reverse mortgage monthly payments, by age levels, were calculated through the loan-to-value (LTV) and payment (PMT) methods to evaluate the value of the reverse mortgages. Based on the optimal combination of the three factors of payment amount, loan interest rates, and the level of acceptance of prices, efforts must be made to extract the best value for the elderly. Only in this way can the interests of both lenders and borrowers be protected, by increasing the market share and economies of scale of the reverse mortgage industry and effectively improving the living standards of the elderly.

The role of life insurance in an emerging economy: Human capital protection, assets allocation and social interaction

In this paper, we provide micro-econometric evidence on the determinants of life insurance demand in China, the largest emerging market in the world. We employ the China Household Income Project (CHIP) dataset for the year 2002 in the analysis. The timing is ideal, because of the nature of the less well developed capital markets and social security systems in China in 2002, which sets a suitable stage to study the insurance demand behavior of emerging markets. The results indicate that both the human capital protection motive and the asset allocation motive are important in explaining the purchase of life insurance in China. In addition, we present three empirical regularities: (1) the positive correlation between the returns to human capital and the returns to market portfolio decrease the demand for life insurance; (2) both the current wealth and future income of a household exert curvilinear impacts on life insurance demand; (3) the breadth of a households social connections has substantial impacts on life insurance demand.

Modeling of group-specific mortality in China using a modified Lee–Carter model

The paper assesses sex-age-specific mortality rates of the four groups of people in China, the country, cities, towns, and counties, based on the mortality data from the China Population Statistics Yearbooks (1988–2009) using a newly proposed modified Lee–Carter model. The results show that in general, the expected age-specific mortality rates decrease over the years, and the decreasing speed increased in the past decade. During 2000–2008, the expected mortality rates decreased over the years for females of all ages and groups and males in cities, remained with no changes for males ages 13–36 in the country and towns, but increased for males ages 13–43 in counties. Predictions for 2009 are made based on the 2000–2008 data, and comparisons to the observed rates from an annual survey show that they match each other well except for males ages 13–43 in counties, whose mortality rates reached record highs around 2005, and bounced back to the level of 2000 in 2008 and was reduced a little further in 2009, benefiting from the promulgations and enforcements of some safety regulations by the government on construction and mining sites where most labors are from counties. The predicted age-specific mortality rates from the model are compared to the assumed rates in the China Life Insurance Mortality Table (2000–2003) promulgated by the China Insurance Regulatory Commission, and they show a great deal of similarity in terms of changing trends over the ages.

Application of Computer Technology in Efficiency Analysis of China Life Insurance Company

During the recent 100 years, the third technological revolution has promoted the development of computer technology dramatically, which thus has brought a great change in the economic society of human beings such as economics structure, employment direction, the form of international economic and the form of business. Besides, new concepts and ideas have been brought into the mode of production and life style of human beings. By the instrumentality of LINDO soft ware and SAS system, this research was conducted to evaluate the super efficiency, technical efficiency, pure technical efficiency and scale efficiency of life insurance companies of China in recent years by using the method of DEA and to analyze and find out the main and secondary factors that influenced the operational efficiency of insurance companies by using the measurement method. On this basis, it was concluded that efficiency of life insurance companies in our country could be enhanced by increasing underwriting quality, strengthening service awareness and optimizing business structure, etc. Index Terms—DEA model; efficiency; Life Insurance Company; insurance market; software LINDO; SAS system

Creating a market in the presence of cultural resistance: the case of life insurance in China

This article brings together two different conceptions of culture—a shared meaning system on one hand and a repertoire of strategies on the other—to understand the emergence of a market. Based on ethnographic data, it examines how a Chinese life insurance market is emerging in the presence of incompatible shared values and ideas acting as cultural barriers, and how these cultural barriers shape the formation of the market. The findings reveal a burgeoning Chinese life insurance market despite local cultural logics incompatible with the profit-oriented institutional logic of life insurance. This Chinese market, however, has developed along a different trajectory from what might be expected. It first emerged as a money management, rather than a risk management, market. I argue that the very cultural barriers that compose the local resistance to a new economic practice also necessitate the mobilization of the cultural tool-kit to circumvent this resistance. These dual processes, shared ideas composing the resistance and the cultural tool-kit circumventing the resistance, shape the trajectory and characteristics of an emergent market. I propose a theoretical model specifying the mechanisms through which the two forms of culture interplay to influence the development of the life insurance. I apply this model to extend Zelizer’s (1979) insights and discuss how culture matters in forging a new market in the global diffusion of capitalism.

The determinants of the demand for life insurance in an emerging economy – the case of China

In the past two decades, many emerging economies have been witnessed the strong growth of their life insurance industry. While research in the demand for life insurance has attracted much attention since the 1960s, most studies have focused on cross‐country studies or well‐established markets in developed countries. As a result of cross‐national variations in life insurance consumption, it has been argued in the literature that factors shaping the demand for life insurance are complex and varied from one country to another. This paper aims to examine key determinants of the demand for life insurance in China with a view to explaining the rapid growth of the life insurance industry in China since its economic reform in 1978. Empirical investigation using a time series data analysis has shown that the main factors which have influenced people in China to purchase life insurance products are directly associated with the successful economic reform leading people to progress to higher layers of economic security, the increase in the level of education and the change in social structure. However, this research has not found a negative effect of inflation on life insurance consumption, even China experienced high inflation in the mid‐1990s.

Morals and Markets: The Development of Life Insurance in the United States.Viviana A. Rotman Zelizer

Previous articleNext article No AccessBook ReviewsMorals and Markets: The Development of Life Insurance in the United States. Viviana A. Rotman ZelizerCarol A. HeimerCarol A. Heimer Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by American Journal of Sociology Volume 86, Number 1Jul., 1980 Article DOIhttps://doi.org/10.1086/227227 Views: 13Total views on this site Citations: 3Citations are reported from Crossref Copyright 1980 The University of ChicagoPDF download Crossref reports the following articles citing this article: Yunho Lee The formation and development of the life insurance market in the Korea -Sciocultural Perspective-, The Japanese Modern Association of Korea null, no.6060 (May 2018): 301–320.https://doi.org/10.16979/jmak..60.201805.301 Yunho Lee Creating Life Insurance Market in Modern Japan - Cultural Resistance and Embracement -, The Japanese Modern Association of Korea null, no.5252 (May 2016): 313–338.https://doi.org/10.16979/jmak..52.201605.313Cheris Shun-ching Chan Creating a market in the presence of cultural resistance: the case of life insurance in China, Theory and Society 38, no.33 (Jan 2009): 271–305.https://doi.org/10.1007/s11186-008-9081-1