The Empirical Analysis In China Life Insurance Company Efficiency

It has been over thirty years since the domestic insurance industry was re-built in1980. Since then, great changes are taken place among the insurance companies, especially life insurance companies. The improvement of macro-economic inviroment, the increase of market paticipators, and the foreign investors’joining, bring our life industry rapid development; however, we shall also attach great importance on the efficiency of these companies.Three-Stage DEA is introduced to calculate the technical efficiceny of China’s major insurance companies from2005to2010. After analysis on the figures, the author wants to discover the factors that lead to the fluctuation of the efficiency of those companies, and to disclose the key factors that affect the insurance companys’ efficiency with comparison of the results from the first-and third-stage.The research indicates:The global financial crisis and the release of China’s new Insurance Law explain the fall of technical efficiency from2008; Most of our life insurance companies are lowly efficient due to a poor external inviroment; Market share has significant effects both on the pure technical efficiency and scale efficiency, while the operating year and the number of branches influence the scale efficiency much.