Research On The Impact Of Internet Insurance Business On The Operation Efficiency Of China’s Property Insurance Companies

With the development of Internet technology,the competitive situation of the insurance industry has undergone tremendous changes,which has attracted extensive attention from the academic community.In order to promote the high-quality development of China’s insurance industry,it is imperative to continue to promote the digital construction of the insurance industry.In the trend of Internet insurance technology empowering the insurance industry,this paper has conducted a study on the impact of Internet insurance business on the operating efficiency of property insurance companies,hoping to provide some reference for promoting the cost reduction and efficiency increase of property insurance companies in China and their sustainable and healthy development.At the beginning of this paper,the related concepts of company operating efficiency are introduced in theory,and the mechanism of Chinese property insurance companies operating Internet insurance business on their operating efficiency is described.After the demonstration,it is concluded that property insurance companies can improve their pure technical efficiency,enhance the scale effect,and promote the obvious improvement of their operating efficiency and the rational use of market resources by carrying out internet insurance business.On the basis of theoretical research,this paper selects the sample data of 20 property insurance companies in China from 2016 to 2020,uses data envelopment analysis(DEA model),selects labor,fixed assets,operating expenses,and financial capital as input variables,and premium income,investment income,and compensation expenses as output variables to measure the technical efficiency,pure technical efficiency,and scale efficiency of the above sample property insurance companies.According to the empirical measurement data,in terms of the overall operating efficiency,China’s property insurance companies have a high level of operating efficiency,but there is still a situation of low resource utilization.It is necessary to continue to improve the management concept and further improve the operating efficiency.In addition,based on the optimization and upgrading of the Internet insurance business and the company’s operation and management,this paper makes an empirical study on the factors affecting the operating efficiency of China’s property insurance companies by relying on the Tobit regression model.The calculated data show that the market share of Internet insurance,the total asset size,the proportion of employees with master’s degree and above,and the solvency are significantly positively related to the operating efficiency of property insurance companies.Therefore,China’s property insurance industry should actively promote industry digitization,steadily develop Internet insurance business,actively optimize the talent structure,build a high-quality talent team,reduce expenses,enhance service capabilities,promote industry intelligence and property insurance product innovation,and then improve its technical efficiency,scale efficiency and pure technical efficiency.Based on the current situation,improving the penetration of Internet insurance business in the property insurance industry can really improve the operational efficiency of China’s property insurance companies.Finally,based on the empirical data,this paper summarizes the whole article and provides some suggestions for the operation and management of property insurance companies from the perspectives of appropriately expanding the company scale,strengthening the construction of talent echelon,enhancing the degree of Internet specialization and promoting the innovation of Internet insurance products.