Comparison Study On The Operating Efficiency Of Chinese And Foreign-Founded Life Insurance Companies

Chinese insurance industry develops from 1980s,which still relies on the giant population of china. the foreign-founded life insurance corporations participate in china insurance market,which gives a lot of experience in life insurance, local life insurance companies not only can learn a lot from such participation, but also face the more fierce competition in life insurance market. Our government took some policies to limit the rapid developments of foreign capitals, which make the Chinese companies take the main share in insurance market. We can make some comparison on domestic and foreign-founded life insurance corporations of the operating efficiency. I think this comparison can give abundance of help for us to know what kind of business owns higher efficiency. Efficiency is the useful measure of resource allocation, only the ability of resource allocation can determine which companies can survive in a long term. Through the comparison, we also can test the traditional concept that foreign capital has a more powerful ability to operate the corporations.The body of this paper is the comparison of this two kinds of comparison on business operations. We use data envelopment analysis methods to manipulate the data from china insurance yearbook from 2010 to 2013.more deeply. We analysis the reasons of how to get a more higher efficiency on life insurance corporation. What’s more, we also take comparison of the two source of revenue of companies.The conclusion of this paper contains what we say below. After 2010, the operating efficiency of Chinese life insurance companies take exceed of foreign-founded.secondly, the super large scale of life insurance corporations have more efficient operation. The main reason for lacking of scale efficiency can be attributed to the small scale, this problem is more severe in foreign-founded companies.