Efficiency Evaluation Of Life Insurance Industry In China And Influence Factors Research

Since the early eighties of last century, China's resumption of the domestic insurance business, the industry has been a thriving scene. Emerging insurance companies continue to emerge, the industry premium income continued rapid growth in recent years, the insurance industry has become one of the fastest growing industries. However, as an important part of the whole industry, life insurance industry has only ten years of independent business, especially after China's accession to WTO, the domestic life insurance companies have fallen in a more intense competition. How to improve the operating efficiency of life insurance companies to deal with the brutal competition is particularly important. Therefore, through the comparison of the efficiency of China's life insurance industry, we can find out the reasons for the efficiency difference.In this paper, we firstly summarize the development history and operating characteristics of China's life insurance industry, relate concepts set forth Efficiency and constructed the input-output index system of efficiency measure. From static and dynamic angle. We studied the efficiency of 25 sample life insurance companies in our country from 2006 to 2012 by using DEA model and Malmquist index model and fond the efficiency differences between Chinese and foreign life insurance companies. Then, the convergence test of the efficiency of the whole life insurance industry was carried out to predict whether the efficiency gap between the life insurance companies in China will disappear. Finally, we analyzed the influence factors of the efficiency of China's life insurance industry by using Tobit regression model and put forward policy suggestions for improving the efficiency of China's life insurance industry Based on empirical results. The main conclusions are as follows:(1) China's life insurance industry is in the initial stage, the technical efficiency is generally low, the average efficiency value was only 7.5 during the study period. Waste of resources is relatively common and there is a larger space to improve.(2)The pure technical efficiency of China's life insurance industry can reach a higher level and the average pure technical efficiency is 8.6, which shows that there are many small and medium-sized life insurance companies in China.(3)From a dynamic point of view of technical efficiency, the management level of the foreign insurance company is better than that of the Chinese capital. After the financial crisis in 2008, the foreign capital insurance companies quickly made adjustments and had been greatly improved and restored.(4) From a technical point of view changes, Chinese and foreign life insurance companies were all more concerned about the progress and technological innovation and had been neck and neck, However, under the impact of the financial crisis in 2008,Chinese life insurance companies had a big fluctuation, while the foreign investment life insurance companies still maintain the continuous development and progress.(5)only Chinese life insurance companies have the characteristics of "club convergence" from the perspective of the whole life insurance industry convergence, which means the efficiency gap of the whole life insurance industry in China will have a tendency to expand.(6) from the regression analysis of influencing factors, Market share, capital utilization and size all have a positive correlation on the efficiency of life insurance companies and the correlation between the market share and the efficiency of the life insurance companies are the largest. There is a certain negative impact between the quality of staff and the insurance company's efficiency, which means it is limited for Life insurance companies on educated people.