The Empirical Research Of Domestic Property And Casualty Insurance Company Branches Operating Efficiency

Sunshine Insurance Group. is one of nine Insurance Group in the country. The business in group is so good that resulted with high share in the P&C Insurance market to be the one of most promising development in corporations. Depends on the powerful shareholders, Sunshine P&C Insurance Co. has having a high speed development to be the fifth in domestic P&C Insurance since setting up. Shandong branch is the leader-sheep in system. Although behind PICC、Pingan、CPIC and keeping pace with China Insurance, its business indexes are pay great attentions. In order to make sure a better and more correct position in the future and reduce the possibility to go a wrong way, the real business statement should be reviewed and the short should be make clear.To know the whole business statement in SD branch, some dates like premium income and loss ratio are not enough to solve problem. So we have to deal with data and analysis efficiency to see the past business capability. The efficiency is consisted of micro-insurance efficiency like economy efficiency, technology efficiency, and resource allocation efficiency. What branch does is how to manage the low branch and make decision not for the direct business and service, so we can analysis branch’s efficiency through the third branches’ efficiency indirectly. Numerous of panel data sixteen cities except Qingdao with third branch from2008-2012year and has been collected. With the help of DEA model and Malmquist index to deal data, we can get micro-efficiency of sixteen cities. Then explain the model data, we can find SD branch of high micro-efficiency with90.86%in average and94.2%in best. Pure technical efficiency is high, having better contribution to technical efficiency; although scale efficiency is lower than pure technical efficiency, its absolute result is also good. Scales of third branch are different that most need expand scale and part need reduce scale to promote scale efficiency.From the overall, SD branch has a high efficiency index with five years in a row, total technical efficiency90.86%in average, pure technical efficiency96.82%in average, scale efficiency93.76%in average. TFP index has a different positive growth in degree, but appears a suddenly11.5%decrease in the forth year. The main reason is that the intense competitive after ratio of mote vehicle insurance becomes market, and some actions like improve the related insurance service to attract consumers increase the business cost. The technical efficiency change rate is the only one of keeping positive growth in five years in a row, which confirms the high input-output level. Pure technical change rate has a little reduce in second and forth year, but to be the positive peak with5.7%. Scale efficiency change rate is negative in third year.The individual with best in row in total technical efficiency、pure technical efficiency、 scale efficiency is Jinan, Jinan、Weifang、Zibo、Laiwu, Jinan only. The worst of three indexes in a row is Weifang、Liaocheng、Rizhao、Jining、Heze、Laiu、 Dezhou, Liaocheng、 Jining、Heze、Dezhou, Weifang、Liaocheng、Rizhao、Jining、Heze、Laiwu、Dezhou. We can see that the invalid total technical efficiency of Liaocheng、Jining、Heze、Dezhou should blame to both the invalid pure technical efficiency and the invalid scale efficiency, the invalid total technical efficiency of Weifang、Rizhao should blame to the invalid scale efficiency. Returns to the scale hasn’t an absolute relation with scale efficiency. Increasing returns to scale means the invalid scale efficiency, while the invalid scale efficiency may appear both increasing and decreasing returns to scale.With positive growth are Jinan、Weihai、Binzhou、Dezhou. Technical efficiency change rate with positive growth in four year in row are Weifang、Liaocheng、Dezhou. Technical change rate of all branch have negative growth in forth year.In the last, we summarize some factors like staff management, product structure, channel restricting efficiency based on the analyses, then make relevant policy recommendations that can be implemented in order to improve operational efficiency.