Risk management and efficiency improvement will always be the two main themes of the insurance industry,which are complementary and inseparable two aspects.Especially since the 2008 financial crisis,the importance of risk management for the daily operation of insurance companies has become increasingly prominent.In the current turbulent and complex external environment,insurance as a "stabilizer" and a "booster" of modern society,its role in resisting risks and promoting economic growth needs to be brought into fuller play.And how to control the risk of insurance companies and promote itsefficiency should become animportant topic of modern insurance business research.In this paper,the three-stage DEA model is used to study the insurance efficiency of 108 insurance companies from 2010 to 2014 in China,including technical efficiency,pure technical efficiency and scale efficiency.And the results of property insurance and life insurance companies,Chinese insurance companies and foreign insurance are also compared.Then,three risk variables are used to measure the endogenous risk of insurers,and the Tobit regressionmodel is used to carry out regression analysis to explore the effect of internal risks on the efficiency of insurance companies.The results indicate that:(1)In recent years,the overall efficiency of China's insurance companies is relativelylow,the average technical efficiency is only 0.282.Even after eliminating the effect of environmental factors and random error factors,the efficiency value is only 0.392.The reason of the inefficiency of technical efficiency is caused by both the inefficiency of pure technical efficiency and the inefficiency of scale efficiency,in which the former accounted for the main reason.(2)Before the adjustment,the efficiency level of property insurance companies was slightly higher than that of life insurance companies,but after removing the influence of environmental factors and random error factors,the efficiency level of life insurance companies was slightly higher instead.It can be seen from this,the impact of environmental factors on life insurance companies is greater than the property insurance companies.(3)No matter remove the influence of environmental factors and random error factors or not,the overall efficiency level of foreign insurance companies is higher than that of Chinese insurance companies,including technical efficiency and pure technical efficiency.However,Chinese insurance companies have certain advantages in scale efficiency.This reflects that there are still some gaps between the Chinese-funded insurance companies and foreign-funded insurance companies in the technology of management.(4)In terms of scale efficiency,most of the insurance companies in China are in the stage of increasing returns to scale,mostly for the emerging small and medium-sized insurance companies,indicating that the appropriate expansion of the size of the company will help China's insurance companies to improve efficiency.A small number of insurance companies are in the stage of constant returns to scale or diminishing returns to scale.If so,these companies should not blindly expand the scale,but should focus on improving the company's management level.(5)Environmental factors have a significant impact on business efficiency ofChina's insurance companies.The effect of GDP growth rate and equity nature(I = 1,foreign company)on the operating efficiency of insurance companies is positive.While the effect of market share on insurance efficiency is negative,and the type of business has different effects on the efficiency of different input variables.(6)There is a positive correlation between the reserve requirement ratio and the technical efficiency of insurance companies,but the correlation is not very significant(90%),mainly because there is no significant correlation between the reserve requirementratio and the scale efficiency of insurance companies.The reserve requirementratio has a significant positive impact on pure technical efficiencyof the insurance company,the higher the reserve requirement ratioset,the higher technical efficiency is.(7)The proportion of transactional financial assets to total assets is both negatively correlated with the technical efficiency,pure technical efficiency and scale efficiency of insurance companies,and the impact on technical efficiency and scale efficiency is significant.Indicating that,the increasingof the proportion of tradable financial assets is not conducive to the improvement of efficiency of insurance companies.(8)The asset-liability ratio has a very significant positive effect on the insurance company's technical efficiency and scale efficiency.Because the insurance company has enhanced the utilization rate of the financial capital through high leverage,enlarged the scale of the enterprise,improved the company's Scale efficiency,and thus improve the overall technical efficiency of insurance companies.However,the correlation between asset-liability ratio and pure technical efficiency was significantly negative,indicates that the increasing in debt is not conducive to the pure technical efficiency of insurance companies.At the end of the article,according to the current situation of China's insurance industry and combined with the empirical results of this article,there are some suggestions on how to prevent insurance risks and improve the efficiency of China's insurance companies. |