Empirical Study About The Efficiency Of Life Insurance Company Based On DEA

China acceded to the World Trade Organization on December 11, 2001 which brought unprecedented opportunities and challenges to China's insurance industry. Over the past six years, China's insurance industry has strictly implemented its promises, opening all the geographical and most of the insurance business to foreign insurance companies. By the end of 2007, the premium income of foreign insurance companies was 39.58 billion yuan, accounting for 8% of the national market. Compared with the pre-accession to the WTO, the premium income of foreign insurance companies has grown by 10 times. At present, total of 121 business organizations and 197 representative offices were set up in china.The foreign life insurance companies gain their survival soil gradually. At the same time, Chinese-funded life insurance companies lose their protection. The rapid development of foreign insurance companies has caused great uncertainty to the domestic companies, which made them improve their management and innovation capacity. In such an open environment, whether the operating efficiency has been greatly impacted? Facing with fierce competition, how should we respond?Based on this question, the author chooses the operating efficiency of China's life insurance company as a research. This article estimates the operating efficiency of domestic and foreign life insurance companies by DEA based on the data of 2001-2006, measuring purely technical efficiency,technical efficiency and size efficiency. Then the author analyzes the operating conditions of them according to the estimation results. The results show that: the domestic life insurance companies are in the front because of their large size, while the advantages of foreign life insurance companies in technology and business philosophy have not been fully shown. But the relative rankings in early accession to the WTO can not hide many problems. This research will help major domestic life insurance companies realize their own strengths and weaknesses in order to adopt effective measures to improve the efficiency and market competitiveness.