Empirical Analysis Of The Profit Efficiency Of Property Insurance Company Based On SFA

Insurance as a industry in market economy condition, it has important function. It is the social economy stabilizer and booster. And the insurance market is an important platform for this industry. On this platform, the midway obtains safeguard and other services through paying a certain consideration.China’s property management efficiency study is started a little late. The study focuses on the efficiency of property of technical efficiency and scale efficiency and cost efficiency, etc, but less on the profit efficiency. The weakness of DEA method see the differences of the deviation of efficiency frontier as no efficiency, and be unable to handle the random factor. Based on the development situation of property insurance company, the stochastic frontier approach is applied to a balances panel of 13 insurance companies over the period from 1999 to 2007, measuring the business efficiency from the Angle of profits in the insurance, widening the ideas and methods research, further perfecting our property management efficiency of research. This article mainly studies from the following several aspects:The first chapter is introduction, which introduces the background, research objective, content and methods. The second chapter introduces the present situation and the development dilemma of property. The third chapter is the study of theoretical analysis of the efficiency of property, which mainly includes the definition and the efficiency of determination method of efficiency, etc. Chapter four is the introduction of the main model about SFA method. The fifth chapter studies the influence factors of profit efficiency. The sixth chapter writes the advices to enhance the profits efficiency of property insurance company. The final chapter o is the conclusion and insufficient and innovation.The main innovation is that it uses the SFA methods in the insurance area, estimating the profit efficiency of insurance. The analysis is applied to a balances panel of 13 insurance companies over the period from 1999 to 2007.The results show that:the profit efficiency is obviously influenced by the market share, staff efficiency. The positive correlation is significant between the average premium income property and efficiency. According to the analysis, we get some advices as follows:strengthening the professional managers market, perfecting governance structure; perfecting management system, strengthening profit evaluation; to transfer of risk; strengthening product development, fostering diversified market subjects.Analysing the operating efficiency and competitiveness of Chinese property insurance company, we need not only to compare to the efficiency but with the foreign property insurance company. Then we can find the advantage and disadvantage in Chinese property insurance company.