Estimation For Chinese Companies With Business Of Non-life Insurance By DEA Method

Insurance market in China has been playing a more and more important role in developing the socialist market economy. At the same time, the appraisal for economics benefit of insurance companies is crucial for normalizing the market behaviors of companies, establishing the orders of market dealing and credit equitably, openly and fairly, protecting the advantages of most insured. It is the first time in China with Data Envelopment Analysis (DEA) to make an objective and comprehensive appraisal for economics benefit of insurance companies in this paper. The paper presents an efficient method to estimate insurance companies for of efficiency, the judgment of economies of scale, and the evaluation of productivity progress of the insurance industry for supervisory office, estimative organ and agency in the market. As an example 8 insurance companies with the datum of non-life insurance in years 1996 and 1997 for the China are evaluated by DEA. Some yardsticks for efficiency comparisons are provided from a perspective of clients and it is the novel point by introducing DR fuzzy number to evaluate the economics benefit of insurance companies, their returns to scale and productivity progress while information is incomplete.