An Empirical Study On Management Efficiency Of Property Insurance Companies

China has become an insurance powerhouse for realizing1.72trillion Yuan premiumincome annual in2013, ranking fourth in the global. Insurance has become the tools formanaging the risk of the social and economic, laid a foundation for away administration afterThe Eighteenth congress of the communist party of China. Facing the uncertainties of theinternational economic and downward pressure of the domestic economy, how can theproperty and casualty insurance industry expand service areas? How to overcome thedilemma, There are products, where is the channels? How to change the extensive mode ofoperation which relying solely on the insurance resources to develop? How to solve thedifficult of claims? The insurance industry must adapt to the new situation of internationaland domestic economic development at the macro level and aspects to focus on improvingtheir operational efficiency.The main goal of this paper is to do empirical research for the efficiency of operatingproperty and casualty insurance industry in China. Give recommendations to improve theoperating efficiency of property and casualty insurance industry. Research focuses onoperating efficiency of main business of property and casualty insurance company’s. Thearticle choose the19property insurance companies to do the research. The data as a sample isin2007to2012, We determined the three input variables: human resources, assets and capital.We Determined four output variables: non-traditional auto insurance premiums, motorinsurance premiums, credit guarantee insurance premiums, personal insurance premiums. Weapply the SFA approach to investigate the cost and profit efficiency. We estimate in bothcases, by not considering the risk factors (model A) and consider the risk factors (Model II).By compared and analyzed the efficiency of property insurance companies, We come to themain conclusions: there is a significant management inefficiencies being in Chineseproperty insurance companies. There are two kind of companies is good in the efficiency ofcost and profit. Who have strong customer resources or strong shareholders.For their uniqueadvantages in terms of sales channels and product innovation.