(1) The overall strength of the insurance industry is further improved. The overall strength of my country's insurance industry is mainly reflected in the following four aspects: First, the business continues to grow rapidly.

In 2006, premium income reached 564.14 billion yuan, a year-on-year increase of 14.4%.

Among them, property insurance premium income was 150.94 billion yuan, a year-on-year increase of 22.6%; life insurance premium income was 359.26 billion yuan, a year-on-year increase of 10.

7%; health accident insurance premium income was 53.94 billion yuan, a year-on-year increase of 19%.

The insurance depth is 2.8% and the insurance density is 431.3 yuan.

Second, the economic compensation capacity continues to increase.

In 2006, the insurance industry paid 143.85 billion yuan in claims and benefits, a year-on-year increase of 26.6%.

Third, the asset scale has steadily expanded.

The total assets of insurance companies were 1.97 trillion yuan, an increase of 29% from the end of 2005.

Fourth, the number of market entities has gradually increased and market vitality has increased.

Throughout the year, 9 new insurance companies were opened, bringing the number of insurance companies to 98; 367 new professional intermediaries were opened, bringing the number of professional intermediaries to 2,110; 4 new insurance asset management companies and 1 new insurance asset management companies were added.

There are 9 insurance fund utilization centers and 9 asset management companies.

(2) Structural adjustment has achieved significant results. With the rapid development of my country's insurance industry, insurance regulatory agencies have attached great importance to the structural adjustment of the insurance industry. They have taken some measures and achieved remarkable results in recent years.

First, the weak links in property insurance have been strengthened and new business growth points have gradually formed.

Agricultural insurance and liability insurance achieved rapid growth. Agricultural insurance premium income was 850 million yuan, a year-on-year increase of 16.2%, and liability insurance premium income was 5.63 billion yuan, a year-on-year increase of 24.3%.

Second, the life insurance business structure was further optimized.

Life insurance companies pay more attention to embedded value and long-term stable development, and regular premium business and long-term life insurance business develop rapidly.

New individual insurance single-term premiums accounted for 27.9% of new individual insurance single-term premiums, and new individual insurance single-term premium income of more than 10 years was 33.66 billion yuan, a year-on-year increase of 19.9%.

Third, the role of the intermediary market will be further brought into play.

Premiums realized through intermediary channels accounted for 79.6% of total premium income.

Fourth, regional development is more coordinated.

Premium income in the central and western regions increased by 15.9% and 20.7% respectively, which were 1.5 and 6.3 percentage points higher than the national average.

(3) Operating efficiency has steadily improved. The profitability of insurance companies has continued to improve.

Investment income has increased steadily. In 2006, the investment income was 95.53 billion yuan, with a rate of return of 5.8%, an increase of 2.2 percentage points from 2005, the best level in the past three years.

The competitiveness of the industry has gradually improved, listed companies have been widely recognized by technical investors, stock prices have continued to rise, and China Life's market value has ranked first among listed life insurance companies in the world.

(4) The reform and opening up of the insurance industry is advancing in depth. The reform and opening up of the insurance industry in my country is also gradually advancing in depth, which is mainly reflected in the following aspects: First, in accordance with the spirit of the State Council Document No. 23, the China Insurance Regulatory Commission revised and improved the "Insurance Industry Development" The Five "Planning Outline" was officially released.

The second is to continue to promote the listing of insurance companies.

Minan Holdings was listed in Hong Kong on December 21, 2006, and China Life A shares were listed on January 9, 2007. Currently, there are five Chinese-funded insurance companies listed at home and abroad.

The third is to continue to promote the reform of the state-owned insurance company system.

China Re Group received an investment of US$4 billion from Huijin, and the reform of China United Joint Stock Company has been basically completed.

The fourth is to steadily promote the pilot comprehensive operation of insurance companies.

China Life invested in Guangdong Development Bank and CITIC Securities, and Ping An of China acquired Shenzhen Commercial Bank.

Fifth, the Insurance Security Fund Council was established to strengthen the collection and management of insurance security funds.

The insurance protection fund currently reaches 8 billion yuan.

Sixth, opening up to the outside world continues to expand. By the end of 2006, there were 41 foreign-funded insurance companies in my country's insurance market, and 133 foreign-funded insurance companies from 20 countries and regions had established 195 representative offices in China.

The degree of internationalization of the insurance industry has gradually increased, and international cooperation has continued to strengthen, forming a situation in which Chinese and foreign insurance companies complement each other's advantages and develop harmoniously.

2. The particularity of the current operation and management of insurance companies in my country Insurance companies are suppliers of the insurance market. The operating conditions of insurance companies directly affect the development of the insurance market. The operation and management of insurance companies has its own particularities compared with other joint-stock companies.

(1) Concentration of risks There is no insurance without risk.

The insurance industry is an industry that deals with risks, and its products and services themselves are risks of various material and interest losses that may occur in social and economic life.

Insurance companies have accumulated a large number of risks through underwriting activities, which requires appropriate risk management techniques to be reasonably dispersed in time and space based on risk identification.

At the same time, insurance companies have accumulated a large amount of funds through the establishment of insurance funds. During the use of these funds to maintain and increase their value, they will inevitably encounter fund management and application risks.

This places higher demands on the risk management capabilities of insurance companies.

(2) The late-occurring nature of costs In addition to administrative expenses, the largest operating cost of the insurance industry is insurance claims.

The price (rate) of insurance company products and services is based on the law of large numbers, which is based on the past loss probability of the insurance subject (i.e. pure rate), plus a certain trend correction coefficient, operating expense rate and expected profit rate (

That is, the additional rate) is determined.

The business model adopted is that fees come first and compensation comes later.