Research On Investment Efficiency And Influencing Factors Of Life Insurance Companies In China

In recent years,the role of the insurance industry in the progress of China's economic construction has become increasingly prominent,and insurance industry has also been mentioned at the height of the national strategy.With the continuous advancement of the market-oriented reform of the insurance industry,the insurance industry has achieved rapid development.The balance of the funds in the insurance industry has continued to grow.The scale of assets has continued to expand.According to the data provided by the Banking and Insurance Regulatory Commission,by the end of 2018,the balance of the insurance funds has reached 16.4 trillion yuan,an increase of 9.97% over the same period of last year.The total asset in the insurance field was 18.33 trillion yuan,a year-on-year increase of 9.45%.However,the insurance industry's competition has become more and more fierce.The traditional underwriting profit margin is facing a huge impact,and with the insurance regulator relaxed supervise on investment behavior of insurance companies,therefore,increasing assetside's gain become their main business objective.This paper targets the life insurance companies' funds as the research object,because the life insurance industry's premium income accounts for 70% of the insurance industry's premium income,and its funds have the characteristics of long duration,large scale and high interest rate sensitivity.The performance of investment activities plays an important role in the stable development of the entire insurance industry and the financial industry.Therefore,it is important to study life insurance companies' investment efficiency separately.Based on the research of related theories,this paper selects the investmentoriented three-stage DEA model to evaluate the investment efficiency of 35 life insurance companies in China from 2011 to 2017.After comparing the efficiency values of the first stage and the third stage,it is concluded that Chinese life insurance company have relatively low investment efficiency,and the investment efficiency of Chinese-funded companies is greater than that of foreign-funded companies.The larger the company's scale,the higher the investment efficiency;life insurance company is significantly affected by the three environmental variables of the number of years of operation,the ownership of the company,and the existence of asset management companies.Moreover,foreign-funded companies are significantly more affected by environmental variables than Chinese-funded companies.The smaller the company,the greater the impact;In terms of decomposition view,life insurance companies' scale efficiency in each year before the adjustment of environmental variables are obviously higher than the pure technical efficiency,indicating that pure technical efficiency is an vital reason for the low investment efficiency.After evaluating the investment efficiency,this paper analyzes the factors affecting investment efficiency by Tobit model,and finds that the short-term investment ratio and employee quality have no significant impact on investment efficiency,while market share and long-term asset investment and time deposit investment has a significant impact on the investment efficiency.Finally,based on the analysis results,the relevant advices are made on how to improve the investment efficiency from the prospect of micro level of life insurance companies and the regulator's macro level.