| Efficiency is a concentrated embodiment of property insurance company's competition.Insurance companies play the role of stabilizing the economy running and risk transfer in the process of socio-economic development, which also occupies a pivotal position in resource allocation and maintenance of people's livelihood.China's insurance industry has been stagnant because of planned economy. Since 1978,as the development direction of socialist market economy has been established,more and more risk has gradually exposed, which puts forward urgent need for this important tool for the insurance.The insurance industry resumes operation since 1980.National economic system reform activities and market economy improvement promote the reform of China's insurance industry accelerating,while ensuring financial security and improving the operating efficiency of the reform of the insurance industry are becoming gravity. At present, property insurance shows the extension scale in pursuit of extensive expansion,in the one-sided emphasis on market share at expense of efficiency and competitiveness with the problem of low efficiency. With the end of WTO transition period,domestic insurance institutions must face more intense competition in the market.In connection with foreign insurance companies,compared to the specific representation of operating efficiency, size and speed of development,how to effectively enhance the competitiveness of China's insurance market has become a real problem, which is the key for China's insurance industry's survival and development. It is significant and urgent to carry out research on the efficiency of insurance institutions.Evaluation of the technical efficiency of China's insurance companies are conducive to China's insurance regulatory authorities to develop a reasonable regulatory policy, helping all property insurance companies in China with the industry to judge itself and other companies in the efficiency gap,and resource allocation optimization and efficiency improvement, which has great significance in China's economic stability and development.This new efficiency reference method—stochastic frontier approach has been used to analyze the technical efficiency of representative ten domestic and five foreign-funded non-life insurance companies in our country. In construction of the production function,the paper adopts a more flexible translog production function and calculates technical efficiency of non-life insurance sector in the year 2004-2008 in China.Technical efficiency of each sample was in steady upward trend year by year. The insurance companies, with a big gap comparing to the technical efficiency frontier, have greater room for improvement. In the analysis of affecting factors,the mathematical conversion has been made to use the two-stage regression method to test possible factors.Through empirical analysis,the paper obtains that ownership and human capital are the main factors to impact the technical efficiency of China's property insurance industry. And to further explore possible ways to improve the efficiency of the property insurance industry. At the macro level, government officials should focus on property insurance industry development model and improve the insurance system.To establish the regulatory system characterized by solvency for the bottom line.It is necessary to build investment environment of insurance funds and to improve the structure of insurance market. At the micro level,managers should improve the overall quality of staff, strengthening internal management, reducing operating costs with completion construction of the governance structure of insurance companies.To improve the incentive and restrictive mechanism of the insurance sector the information disclosure system of insurance companies, and results-oriented funds operation are also important for insurance companies to increase the profitability, which provides reference for technical efficiency improvement in China's insurance industry. |
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