The Research On Efficiency Of Internet Insurance

Efficiency is one of the most important issues in the research of economics.As for the industry of insurance,the efficiency of insurance industry determines the competency of the development of the insurance industry.The industry of insurance in China develops fast after the reformation but the low efficiency is the reality in the process of the development.In recent years,Internet Insurance develops quickly as well in China,however,we should pay more attention on efficiency,which is the main problem at the same time.At the first beginning of the development of Internet Insurance,it is meaningful for the lasting development of China's Internet Insurance to attach importance to the issue of efficiency.Therefore,discussing the efficiency of the Internet Insurance and finding out the factors that affecting the efficiency of Internet Insurance as well as coming up with the ways and approach to improve the efficiency is quite necessary.Basing on the theory of economics,this thesis uses the ways of econometrics and management as well to do research on the efficiency of Internet Insurance.Meanwhile,according to the results,this thesis makes analyses about the endogenous factors and exogenous factors which affecting the efficience of Internet Insurance.At last,it puts forward the approaches to improve the efficiency of Internet Insurance.Focusing on these research content and research purpose,this thesis includes 8 sections:Section One is the introduction.In this section,it introduces the background from three aspects including the academic area,insurance companies and the industry of insurance.It also introduces the significances of the theme.Next it introduces the research approaches(including the Data Envelopment Analysis,Tobit regression analysis and model of PEST)and the structure of the thesis.At last,it introduces the innovation and deficiency of this thesis.Section Two is the literature review.When it comes to this topic,the scholars focus more on qualitative research instead of quantitative research.This topic is a new reseach content in academic area,so there are fewer articles to refer to.The literature review includes three respects: the first one is the overseas and domestic literature review on the study of the efficiency of insurance institution;the second one is the overseas and domestic literature review on the study of the Internet Insurance;the last one is the overseas and domestic literature review on the study of the efficiency of Internet Finance.Section Three is the development of the Internet Insurance.At first,it summarizes the history and the progress of Internet Insurance in foreign countries.Then it introduces the origin and the progress of Internet Insurance in China and the characters of China's Internet Insurance in the different phrases.At last,in the respect of value chain of insurance,it makes a deep analysis about the effects of the Internet technologies(the Internet of Things,Big Data and Block Chain)to the value chain of insurance.Section Four is the hypothesis of the efficiency of Internet Insurance.Basing on the theory and the situation of insurance market in China,this section proposes 4 hypotheses about the efficiency of the Internet Insurance.Basing on the theory of life cycle and the development period of the Internet Insurance in China,this section comes up with the first hypothesis,which is that since the Internet Insurnace in China is at the early stage of development,the efficiency of Internet Insurance is not too high.Basing on the characters of life insurance and property insurance in China as well as whether it is easy or not to sell these insurance online,this section comes up with the second hypothesis which is that efficiency of life insurance will be higher than property insurance.According to the theory of specialized strategy,this section comes up with the third hypothesis,which is that as a specialized Internet Insurance,efficiency of Zhongan will be higher than other traditional insurance companies.According to the theory of X non-efficiency,efficiency of medium and small sized insurance companies will be higher than the big sized insurance companies.And in the later section,these 4 hypotheses will be tested.Section Five is the introduction of the theory and measurement of insurance firm's efficiency.This section mainly introduces the Frontier Analysis,and it includes parametric approach and nonparametric approach.The nonparametric includes the Data Envelopment Analysis and Free Disposal Hull.The parametric approach includes Stochastic Frontier Analysis,Distribution Free Approach and Thick Frontier Analysis.Among these approaches,the Data Envelopment Analysis and Stochastic Frontier Analysis are the most famous ones.After explaining these approaches,it compares the advantage and disadvantage of Data Envelopment Analysis and Stochastic Frontier Analysis.And according to the research content and purpose,it selects the matched approach for this thesis.Section Six is the design and analysis of the efficiency of Internet Insurance.This thesis selects Data Envelopment Analysis as the methodology to do research about the theme.At first,it selects 20 insurance companies as the research objects,and according to the rules as well as other scholars' research,it selects the indexes of input and output.The input indexes include human capital,fixed assets and operating cost.And the output indexes include premium from the Internet and the page view of the official website.Then it uses DEAP 2.1 to make empirical analysis of the efficiency of Internet Insurance.According to the empirical results,it makes some analyses about the problem of efficiency.Basing on the empirical results,this section analyzes the factors that affecting the efficiency of the Internet Insurance.It includes endogenous factors and exogenous factors.It uses the Tobit regression analysis to analyze the endogenous factors and uses the PEST model to analyze the exogenous factors.Section Seven is the ways to improve the efficiency of Internet Insurance.According to the endogenous factors and exogenous factors,it comes up with the ways to improve the efficiency.In the respect of endogenous factors,it should cultivate the interdisciplinary talent and professional service-type talents;it should promote the popularity of the insurance companies and market share;it should make the cooperation with the third platform as well.When it comes to the exogenous factors,the regulator should good environment for the development of Internet Insurance.The insurance awareness should be improved and strengthen.And it should make full use of the Internet technology to promote the development of the Internet Insurance.Section Eight is the conclusion and prospect of this thesis.According the theory and the empirical results of the thesis,it comes up with 4 conclusions and makes deeper research in two respects.The main conclusions of this thesis are as follows: Firstly,at the moment,Internet Insurance is still regarded as a way to sell the insurance on the Internet.However,the core of the Internet Insurance is that Internet technology will affect every part of the insurance value chain.As a result,it will reform the industry of insurance.Secondly,according to the empirical results,at the early stage of the development of Internet Insurance,efficiency of the whole insurance industry is low.Because of the characters of the insurance products,efficiency of the life insurance is higher than the property insurance.Thirdly,according to the endogenous factors,insurance companies should pay more attention on the talents,cooperation with third platform and improve their popularity.Lastly,according to the exogenous factors,insurance companies should improve their efficiency of Internet Insurance from politic,economy,society and technology.The innovations of this thesis are as follows: Firstly,about the academic research of Internet Insurance,scholars focus on the qualitative research.There are less literature reviews related to the quantitate research.This thesis uses Data Envelopment Analysis to do empirical research about the efficiency of Internet Insurance,which is an innovation.Secondly,when it comes to the problem of selection of input and output indexes,most scholars select financial indexes,according to this research content,this thesis selects both financial indexes and Internet indexes which is also an innovation as well.