Research On The Impact Of Insurance Technology On The Efficiency Of Insurance Companies

Insurance industry is an important part of the financial industry.With the development of a new round of scientific and technological revolution,the integration of insurance and technology has become an inevitable trend.In the past decade,insurance industry has actively adapted to the new trend of combining technology with innovation in China,applying innovative technologies such as the Internet,big data,artificial intelligence,Internet of Things and 5G to daily business operations.With technology enabling accurate pricing of products,product innovation and service upgrading,insurtech has witnessed rapid development.In order to further implement the national "14th Five-year Plan" development plan,to create a new development model of "double cycle" of insurance technology application,and to achieve high-quality development of insurance industry,insurance technology has become the top priority in the development of insurance industry.Under the background of insurance technology empowering the insurance industry,this paper studies the impact of insurance technology on the operating efficiency of insurance companies,which is conducive to the efficient operation and healthy development of insurance companies in China.First of all,the article describes the development of insurance technology,development status and the impact on the insurance industry;secondly,in the theoretical analysis part of chapter 3,relevant research hypotheses are proposed according to the exploratory innovation theory,the long Tail theory,SCP theory and brand premium theory.In the empirical analysis part,first of all,the operating data of 126 insurance companies in China from 2013 to 2019 are selected,and the operating efficiency value is calculated by DEA model,and the calculation result is used as the explained variable of subsequent empirical research.Then,in the fifth chapter,the fixed effect model is used to analyze the impact of insurance technology development on the operating efficiency of insurance companies,and the heterogeneity analysis is made.Then,The robustness was tested by stepwise regression and changing the empirical model,which further proved the reliability of the benchmark test results.Finally,the influence of market share and brand premium on business efficiency under the background of insurance technology development is further discussed by cross multiplier.The empirical results show that:first of all,insurance technology with a ushaped relationship between insurance companies operating efficiency,namely the Internet insurance stage,the inadequate resources use,new technology input-output lag factors,such as insurance,the development of science and technology will be a negative impact on the operation efficiency of insurance company,the new technology can assign insurance stage of science and technology,the precipitation began gradually release the benefits of science and technology,This has boosted the efficiency of insurance companies.Secondly,The effect of Insurance technology on the operating efficiency of property insurance companies and life insurance companies is different,and the effect of insurance technology on the operating efficiency of property insurance companies is better than that of life insurance companies;due to the easy availability of relevant product data,property insurance companies are more likely to use big data and other technologies to segment customers,accurately position customer needs,and realize differentiated pricing and differentiated products,so as to tap the "long tail market".For life insurance companies,due to strict data regulation and limited product development,the impact of insurtech on their operating efficiency may not be significant.Last but not least,The improvement of market share and brand premium ability can help improve the market competitiveness and premium income of insurance companies.In the long run,market share and brand premium can effectively promote the positive effect of the development of Insur Tech on the operating efficiency of insurance companies.Based on theoretical analysis and empirical analysis,this paper puts forward the following suggestions:first of all,insurance companies should increase investment in science and technology and clarify the development direction of digital transformation.Strive to increase market share,enhance their own brand awareness;insurance companies should also accelerate the application of insurance technology,so as to improve their own operating efficiency under the background of the development of insurance technology.Secondly,for the development of insurance technology,it is necessary to formulate reasonable development policies and create a relaxed development environment.At the same time,we should strengthen the construction of insurance ecosystem and create a platform for industry communication and cooperation.