| The Chinese government unveiled measures to develop the insurance industry, vowing to raise premium incomes to 5 percent of GDP by 2020 on July 9,2014.The package, announced on the State Council website, let the insurance industry play a bigger role in the fledgling social security network.Reform successfully to improve competitive to confront fierce competition, life insurance industry should raise its efficiency. And an economy of scale is really relevant to the efficiency of life insurance industry. Therefore, it has great realistic significance for us to analysis the economies of scale in life insurance to enhance its efficiency and competitive. This paper uses Cost Function Model and Panel-Data Regression to get a detailed analysis of the situation of economies of scale.Firstly, this thesis summarizes the study of economies of scale of the insurance industry at home and abroad on the basis of the background and significance of the study. Secondly, this paper introduces the theoretical knowledge about the economies of scale and its metrics. Then, the paper presents the relevant concepts of life insurance business structure.After the preparation of above, according to the situation of china’s life insurance industry, the paper use cost function and china’s life insurance’s panel-data between 2006 to2010, which selects 42 life insurance companies as samples in the empirical analysis. The results show that there are economies of scale in life insurance industry; however, the big ten life insurance companies’ efficiency of economies of scale is not obvious.The most important, the performance and its influence factors of TP life insurance CO,.LTD. Sichuan Branch are also be analyzed in this thesis. According its KPI, its performance becomes more and more effective in recent years and its management goes to new step. The influence factors of performance are in accordance with economic of scale.Finally, this thesis summarizes the conclusion and put forwards suggestions for reform according to the development of life insurance industry. |
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