The Strategies for Strengthening the Competitiveness of Life Insurance Companies

The purpose of this paper is to analyse the key factors influencing the life insurance companies's competitiveness. Various performance variables differentiate this paper from other existing studies employing a single performance variable. The business activity is divided into two categories, the underwriting activity and the investment activity. Each activity produces two performance, cost and profit performance. This study analyses the factors influencing four performance variables and suggests implications enforcing the life insurance companies' competitiveness based on the analysis. The results of this study axe summarized as follows. Firstly, we find a statistically significant correlation between the cost performance in the underwriting activity and other performance variables. However, there is not a statistically significant correlation between the other three performance variables, the cost performance in the investment activity, the profit performance in the investment activity, and the profit performance in the underwriting activity. Secondly, it is desirable to increase the selling of protection products for enforcing the competitiveness in respect of the cost performance. Finally, it is needed to increase the ratio of loans for enforcing the competitiveness in the area of the investment activity.