The Empirical Analysis Of Operational Efficiency Of The Non-Life Industry Based On The DEA Method

Efficiency is one of the key topics in Economics study.It is the important standard which can measure operation,resoures utility and technical level of financial institutions.Thus,efficiency analysis becomes effective method for management achivement of financial institution. As far as the efficiency of Property&Casualty insurance industry is concerned,it means effective allocation of the resources,abilities of market competing,input-output and sustainable development capacity. The competitiveness of the insurance industry is the key to its sustainable development,and efficiency is also the centralized embodiment of the competitiveness.Efficiency has already become the core problem of managent of Property&Casualty insurance .Obviously,Enhancing the insurers'efficiency is very important to insurers'healthy,sustainable and stational development. As a result,it is theoretical and realistic significance to research the efficiency of the insurance industry and influence factor.The paper compares pluses and minuses of the two basic methods which can be used to measue the efficiency ,on the base of studying the basic meaning of the efficiency of the insurance industry.Data envelopment analysis(DEA)method is used as a basic method to study the cost efficiency, the technical efficiency,pure technical efficiency,allocative efficiency and scale efficiency of the non-life insurance industry of our country from 2001-2005. It has studied the relatives and mechanism among these efficiencies.The study not only shows that insurance companies'efficiency reflects zigzag vibration formation from 2001 to 2005 year,but also foreign property company are more effective than domestic ones.It also discovered that the reason of low cost efficiency lied in allcoative inefficiency.The change of macro-ecomomic environment and the alterment of the industry framework as well as the management strategy, the management level, the personnel quality and so on ,can have significance influence to the efficiency of the insurance industry. On the macro-economic basis,we analyse the influence of economic environment,fiscal and monetary policy,and show that Interest rate undulation is a obvious fator to the efficiency.On the Property insurance profession ,we analyse the influence factors by concentration,product discretion and the barrier of enterance. It also shows that the market share which is blind expansion can low the efficiency of the property insurance company.On the inter basis,We use the Tobit return model to empiricaly research exogenous factors by taking these influence factor as the independent variables and using the efficiency value as the dependent variable. The results reveal that the quality of staff has the remarkable influence to efficiency by the property insurance company's internal management.According to the actual situation of management efficiency, we can enhance it from inter and outer aspects. We may take steps by stressing in improvement of the staff's overall quality, innovation of domestic property insurance company, and unceasingly increasing premium for property insurance the income.On the other hand, we can begin by enhancement the level of opening up,introducing foreign capital stockholder's rights, strengthening and improving the supervisement level of reimburse ability and Consummation the risk guard mechanism.