An Analysis On The Investment Efficiency And Its Influencing Factors Of The Insurance Industry Based On The DEA And Tobit Model

Insurance industry is one of the three pillars of the financial system in China, is an important component of the social security system. Along with the rapid development of China's economic, the insurance industry, and the rapid growth of insurance premium income and insurance assets, providing a good opportunity of using insurance funds. And from July 2005 we began the gradual interest rate marketing, the rate system exchanging and the insurance regulatory agencies began to relax the investment channels gradually for insurance company in recent years, all of this indicate that the investment environment of the insurance industry is undergoing great changes. By 2009, the insurance company's total assets reached 4.1 trillion yuan, is nearly 9 times in 2001, and the balance of the insurance funds 3.7 trillion yuan, 10 times in 2001. But the insurance industry still has the problem of low productivity. Therefore, in order to enhance the competitiveness of insurance companies, Researching the investment efficiency of the insurance industry has a crucial importance.This paper selects all the company established before 2006, First, studying the status of China's insurance funds, made a preliminary analysis, found that China's insurance funds has a growing size, but there still have such questions: a narrow channel of funds ,a lower investment income, an irrational the investment structure, a serious term matching problem , incomplete of the insurance company's risk management system and so on. Second, using data envelopment analysis (DEA) to estimate the investment efficiency of the 2006-2008 insurance companies, and comparing the efficiency of life insurance with property insurance, Chinese insurance companies with foreign-funded insurance companies, We get life insurance and property insurance been greater similarity in recent years, index of its technical efficiency, pure technical change index and tfp change index are less than 1, in a decline level . But whether life insurance or property insurance, Chinese funded have more obvious scale competitive advantage, foreign-funded have a higher technological innovation efficiency, so that China's insurance still need to improve their own competitiveness. Third, building a Tobit regression model, this paper innovative select the appropriate influencing factors: Investors, Company size, Market share, Human capital, The proportion of short-term investments, The availability of asset management companies, Established time. We get the following conclusion: investors, human capital, established time on the life and property insurance company's investment efficiency are negative; company size on life insurance company's investment efficiency is opposite,but is not significant on property insurance; the asset management companies on property insurance company's investment efficiency is opposite,but is not significant on life insurance,this shows that life and property insurance's influencing factors on the insurance investments are very different; the proportion of short-term investments and market share have significant positive impact on efficiency. Finally, Based on the results of investment, making the recommendations accordingly.