Research On The Efficiency Of Life Insurance Funds In China

In recent years,China has issued a series of policy documents on the use of insurance funds,advocating that insurance funds help shanty town reconstruction,urbanization construction and One Belt And One Road development and other projects.With the continuous expansion of the application scope of insurance funds,the application efficiency of insurance funds has become a problem worthy of attention.In 2016,China began a risk-oriented second-generation solvency system and officially changed from a scale-oriented to a risk-oriented solvency supervision system.The system implements a three-pillar regulatory framework that is in line with international standards,classifying risks into two categories that can be quantified and difficult to quantify.At the same time,it makes clear provisions on life insurance contract liability assessment and minimum capital.During the trial operation of the second generation,the relevant departments made statistics showing that the life insurance industry released a large amount of capital.From the perspective of policy analysis and actual operation,it can be known that the implementation of the second generation solvency system has a significant impact on China's life insurance industry.The main contents of the article are as follows: Firstly,will the implementation of the second-generation policy affect the efficiency of fund utilization? Secondly,what factors will affect the efficiency of capital use? Based on the theory and policy analysis,this paper selects the data of 43 life insurance companies from 2012 to 2017 as samples,and uses DEA and panel data regression methods to conduct empirical tests.The empirical analysis of the article is mainly divided into two parts: First,select the investment income as the output index,select the insurance fund,human capital and operating expense indicators as the input indicators,and use the DEA method to measure the efficiency of life insurance fund utilization,mainly to measure the technical efficiency(TE)and pure technical efficiency(PTE)and scale efficiency(SE);Second,on the basis of the efficiency measure,the DID model is selected to analyze the implementation effect of the policy by taking the policy of the second generation as a dummy variable.In the analysis of other influencing factors,the size of assets,market share,proportion of operating expenses,types of investment and personnel quality are selected as explanatory variables,while property rights,whether there is an asset management company and operating years are control variables.Through panel data regression,analyze other factors that affect the efficiency of fund utilization.Through theoretical analysis and empirical test,relevant conclusions and Suggestions are given.Through theoretical analysis and empirical research,it is found that:(1)There are fewer companies in China's life insurance companies that use efficiency to achieve efficiency,and the average value of scale efficiency(SE)is higher than technical efficiency(TE)and pure technical efficiency(PTE).In the case of distinguishing property rights,it can be seen that the technical efficiency,pure technical efficiency and scale efficiency of Chinese life insurance companies' funds are higher than those of foreign life insurance companies.Chinese life insurance companies have an advantage in terms of policy and geography,making their capital use more efficient than foreign life insurance companies.(2)The regression analysis using the data from 2014 to 2017 shows that the policy variable has an impact on the efficiency of the use of life insurance funds,and the implementation of cdi policy can improve the efficiency of the use of funds.Panel regression analysis shows that the size of explanatory variable assets has a significant positive impact on the utilization efficiency of life insurance funds.Most life insurance companies in China are in the stage of increasing return on scale,and the increase of total assets will lead to the improvement of capital utilization efficiency.The larger the market share,the lower the efficiency of capital utilization,and the market share has a significant impact on the efficiency of capital utilization.Enterprises in the initial stage spend more capital on expanding market share,which indirectly leads to the reduction of capital utilization efficiency.The higher the proportion of operating expenses of Chinese life insurance companies,the lower the efficiency of capital utilization.The regression coefficients of explanatory variable investment types are all greater than 0,and the investment of enterprises can directly improve the capital utilization efficiency of companies.The quality of personnel also has a positive impact on the efficiency of fund utilization.The article gives recommendations from three perspectives through analysis.Firstly,life insurance companies should improve their asset and liability management levels and enhance their risk management capabilities;Secondly,accelerate the improvement of the financial system and establish a multi-level capital market;Finally,regulators should continually adjust policies and regulations to adapt to the changing external environment.