Study On The Efficiency Of China’s Insurance Conglomerate: Based On The Three Stage DEA

As international economic globalization,financial industry decentralizedmanagement pattern are gradually being broken.Mixed operation become the maintrend of global finance.Financial institutions have set up a large financial groupthrough mergers and acquisitions. In response to the fierce competition in thefinancial globalization,the insurance industry as an important part of the financialsector,is also affected by the trend of collectivization.The top10in the global rangeinsurance companies are insurance group companies. The competition of domesticinsurance company of China in face of the pressure of China’s insurance market andinternational market is becoming more and more fierce.The establishment ofinsurance group will become the breakthrough way of China’s insurance industry atpresent or in the future. Therefore, to examine the efficiency of the insurancecompany of China and explore the influence of the group of China insurancecompany business is significant, the collectivization process provide theoreticalsupport for the Chinese insurance company.This paper analyzes the concept of insurance group and the main mode ofcollectivization of the insurance company firstly.Then summarizes the process ofcollectivization of the major countries in world in order to offer the Chinese insurancecompanies the reference road of collectivization. At the same time, this articleexpounds the theoretical basis of the insurance company collectivization intheory.Through the analysis of the main approaches to the study of the efficiency, thispaper has chosen the three stage DEA method as the main method.In the second stage,through the SFA method eliminating the influence of environmental factors on the testresults, making the conclusion in more realistic situation, get the followingconclusion:First, life insurance company group is higher than the specialist life insurancecompany in comprehensive technical efficiency, pure technical efficiency and scaleefficiency.Instructions in the field of life insurance, life insurance companies grouphave to rise efficiency of company through a comprehensive risk management andinternal control construction in recent years.The efforts of the informationconstruction, channel construction, group life insurance business norms greatlyimprove the operational efficiency of life insurance group company.Second, collectivize property insurers’ technical efficiency is also higher thanthat of the specialist property insurers.The reason is that the insurance companygroup have high scale efficiency. On the business ability,the advantage ofcollectivization is not obvious.To explain our country property insurance group afterthe integration of resources need to improve the management ability of enterprisesand pay attention to the construction of internal control and risk management. This study of insurance conglomerate in our country show that the developmentof the insurance group is still in its primary stage in our country, but the advantages ofgroup company has preliminary revealed.To improve the core competitiveness ofinsurance business,our country should promote the collectivization of insurance.