Research On Total Factor Productivity Of Chinese Life Insurance Industry And Its Influencing Factors

The development trend of Chinese life insurance industry is good,and premium income has continued to increase,from 956 billion yuan in 2011 to 2,626.087 billion yuan in 2018.The total assets of life insurance companies have increased from 4.99 billion yuan in 2011 to 14,708.848 billion yuan in 2018.Although the total amount of premium income has grown rapidly,there is still a large gap in insurance depth and insurance density from developed countries.Life insurance companies also have problems of low productivity and irrational resource allocation.Therefore,in the face of Chinese opening-up of the insurance industry With the continuous deepening and the gradual entry of foreign insurance companies,Chinese life insurance industry is facing new challenges.The key to improving the competitiveness of the insurance industry and enhancing its sustainable development ability is the improvement of total factor productivity.Therefore,this article studies the change of total factor productivity of Chinese personal insurance industry,and explores ways to improve the total factor productivity of Chinese personal insurance companies.Firstly,through a summary and theoretical analysis of domestic and foreign research literature,this paper selects the DEA-Malmquist model based on variable returns to scale,and estimates the changes in the total factor productivity and its decomposition indicators of life insurance companies in China from 2011 to 2018.The study found that the total factor productivity of Chinese life insurance companies has declined in recent years,but has picked up in 2018;the total factor productivity of health insurance companies has only declined in 2017,and the rest of the years have shown a growth trend,and the growth rate has slowed down;pensions The level of total factor productivity of insurance companies has been increasing,and the growth rate is large.In terms of breakdown indicators,for life insurance companies,changes in technological efficiency and technological progress have affected changes in total factor productivity.For health insurance companies and endowment insurance companies,technological progress is the main reason for increasing their productivity.The effect of efficiency changes is smaller.From the perspective of changes in technical efficiency and its decomposition indicators,the growth of technical efficiency and pure technical efficiency of life insurance companies is relatively close,and the scale efficiency has decreased slightly;the technical efficiency of health insurance companies has fallen significantly between 2015 and 2017,and has a similar relationship with scale efficiency.The changes are close;the level of technical efficiency,pure technical efficiency,and scale efficiency of endowment insurance companies have all increased.The improvement of technical efficiency mainly depends on the improvement of pure technical efficiency.Secondly,by analyzing the factors affecting the total factor productivity of Chinese personal insurance industry,it can find out that the internal and external factors of the company have a more significant impact on total factor productivity and technological progress,but not a significant impact on technological efficiency.Among them,internal factors,staff quality,capital scale,and per capita premium have a significant impact on total factor productivity,while the number of years of establishment,return on net assets,and comprehensive expense rate are not significant.Among the external influence factors,per capita GDP,the degree of financial industry development,and interest rates have a significant positive impact on total factor productivity;while the inflation rate and market concentration have a significant negative impact on total factor productivity.Finally,for the analysis of the calculation results of the total factor productivity change,this article puts forward suggestions from the company management level and government supervision level to promote technological progress with insurance technology,and optimize corporate governance to improve technical efficiency.An optimization is proposed for the regression results of influencing factors Suggestions on human capital,strengthening cost control,maintaining the company's modest size,promoting financial industry support for insurance,and strengthening insurance supervision.