Effects of Financial Assets Earnings on Chinese Life Insurance Premium

Under the frame of Portfolio Theory, the paper examines the situation and driving force of China's life insurance premium both in short-term and long-term with the time series models.It proves that the increase in savings deposits and interest rate exerts much impact on life insurance premium when times lag to be considered and it also indicates that stocks and national bonds fail to establish a long-run equilibrium with premium.Accordingly,the increase in premium of life insurance company in the short-term depends on richer marketing channel and should provide comprehensive better service.In addition,innovation in indemnificatory insurance service is also necessary.