Research On The Efficiency Of Founds Utilization Of Life Insurance Companies

The promulgation of the new and old "National Ten Articles" of insurance in 2006 and2014 promoted the rapid development of China's insurance industry.At the end of 2019,the premium income of China's insurance industry reached 4.265 trillion yuan.At the same time,the balance of insurance industry funds also increased rapidly,reaching 18.527 trillion yuan by the end of 2019.In recent years,due to the increasingly fierce competition in the insurance market,the profit margin of insurance companies' underwriting business has gradually narrowed,and the use of insurance funds has become the main source of insurance company profits.With the rapid increase in the balance of funds utilization,the insurance industry has the problem of low funds utilization efficiency.The level of insurance funds utilization efficiency plays an important role in the development of the insurance industry and even the financial industry.Therefore,improving the efficiency of funds utilization is currently the insurance company important task.From the past years of property and life insurance premium income,we can see that the proportion of life insurance premium income in the total premium income of the insurance industry is much higher than that of the property insurance industry in the total premium income of the insurance industry,and the duration of the property insurance funds is short and the amount is small.Therefore,this article selects life insurance companies as the research object.Studying the efficiency of life insurance company funds utilization is conducive to improving the research depth of life insurance funds utilization efficiency,improving the efficiency evaluation method of life insurance funds utilization efficiency,and providing a theoretical reference for improving the low efficiency of life insurance funds utilization.Based on a more systematic discussion of the status of life insurance company's funds utilization in China and the basic theory of efficiency of funds utilization of life insurance companies,this paper selects reasonable input-output variables and exogenous environment variables based on a large number of related research and logical thinking,and uses four-stageDEA model and the Malmqusit index model perform static calculation and dynamic assessment of the funds utilization efficiency of the selected 47 life insurance companies from2015 to 2018.The empirical results show that:(1)Based on a static perspective: the overall efficiency of life insurance companies' funds utilization before and after excluding environmental variables is not high,and it is affected by the presence or absence of an asset management company,the nature of the company,the company's operating life,asset size and market share.Before the exclusion of environmental variables,the overall low efficiency of funds utilization was mainly due to the low technical efficiency;after the exclusion of environmental variables,it was mainly due to the low scale efficiency;(2)Based on a dynamic perspective: from 2015 to 2018,the overall factor productivity of 47 life insurance companies has declined.The main reason for the decline in total factor productivity is the decline in technical efficiency,and the main reason for the decline in technical efficiency is the decrease in scale efficiency.Finally,combined with the relevant conclusions obtained from the multi-dimensional analysis of empirical results,it puts forward countermeasures to encourage technological innovation,increase scale efficiency,and strengthen the talent pool for funds utilization,in order to provide a theoretical reference for China's life insurance companies to improve the efficiency of funds utilization.