A Emperical Study On Efficiency And Industrial Organization Of Property-liability Insurance Industry In China

Insurance industry is one of three main components in Finance industry and becomes one of the rapidest development industries in recent years.However,the insurance industry is lagged and undeveloped when compared with banking industry in China,and is faced with many problems that is attributed to the topic of efficiency.On the point of economics efficiency based on the scarcity is to enhance using of the social resource,so efficiency is on social view which is distinguished with benefit;on the financial intermediate's point insurance exists based on the function theory of insurance.Efficiency of Property-Liability insurance industry is measured on the two theories,and the expected loss for the security,asset invested for the intermediate.OnFront software based non-parameter method and created by LUND of Sweden is used to measure the direct input-saving and output-orientated efficiency,techincal and economic efficiency of 14 P/L enterprises in China,The model of efficiency affected by factors and the model of industrial organization(Berger and Hannan 1993) is empirical studied and the results indicated:With the down of concentration overall efficiency is in the increasing,however solvency is dropped off,the cost efficiency is not so high because of the allocated efficiency,and the capacity utilizaton is low;the smaller property-liability insurance enterprises is no better than the bigger,and the foreign companies is no better than the domestic entirely. The MP and ES theories are no existed in property-liability insurance market in China,but the big companies fostered the "quiet life" to some extent.To improve the efficiency of property-liability insurance it is suggested that P/L industry is implemented the open reform with the system of market economy,The bigger companies should keep up the modern company system while the smaller need more rational to expand,And the government goal of supervision is to better off efficiency on the base of the minimums solvency and search for the common benefit which will make the property-liability insurance industry stronger and bigger.