An Empirical Study On The Factors Affecting The Operational Efficiency Of Life Insurance Companies

The insurance industry is an important part of social security system. In the process of social security, Insurance has economic compensation function, and in the process of financing, it can get financial and risk management function. The guests have thoughts in the 40 special finance insurance on April 11,2015, the thoughts are that the development of the insurance industry is facing an ageing population and in the background of the whole society pay more attention to health. Life insurance companies will present a demand differentiation development and diversification, in such conditions, the insurance companies and the whole industry actively realize the transformation and upgrading to improve the efficiency is of great significance; Not only has important effect to improve the core competence of company, also can maintain the stability of financial and capital market, finally also play an effective role in guiding to national regulation. More and more people choose to buy insurance to reduce the uncertainty of life in the future, but in the face of wide variety of insurance products in each company, consumers how to choose depends on the efficiency of the companies; Here the efficiency of the connotation is rich, for consumers, it is insurance company's reputation, bring their biggest interests and the most security; For insurance company itself, is the governance ability and profitability can be improved. Only accept insurance business and investment business together to get the common development, can achieve the prosperity and development. Research on efficiency of life insurance companies, researchers use different methods, including parametric and non-parametric method, from the perspective of micro and macro research; However, domestic research started relatively late compared with abroad, research methods relative single; Therefore, whether from the angel of theory or from the angel of reality, it is particularly important to study the efficiency of companies and the influencing factors.With life insurance company as an example, this study selected the 18 life insurance companies in 2009-2014, including nine Chinese life insurance companies and nine joint venture companies. Firstly, I started the static analysis of efficiency values by the BCC model from the view of microcosmic,, I select the input indicators include:capital, labor quantity and expenses, and output indicators include:premium income, compensation expense and invest income. Empirical study results show that there is a growing trend for the overall technical efficiency mean. The technical efficiency is lower than the pure technical efficiency in same period, the reason is for efficiency of scale; Then I studied the efficiency changes of dynamic analysis using the Malmquist index, including changes in each company. The empirical study results show that technological progress promote the improvement of the efficiency of life insurance company. Finally I use Tobit regression model to analyze the significant factors affecting the efficiency of life insurance company. The empirical study results show that the market share and human capital is significantly positive related to factors that influence efficiency of life insurance company. The company properties and the fixed time have less impact. The company size is the negative factor. On the basis of theoretical analysis and empirical study, then I put forward the method of improving the efficiency.