On The Efficiency Of Chinese Life Insurance Company And Analysis Of The Influencing Factors

Since the reform and opening up, China's life insurance market has experienced nearly 30 years of rapid development period, but the life insurance market in China has long been extensive operation, the life makers are focused on the development of speed, the development of the scale of the neglect of the internal efficiency. With the life insurance market, constant improvement and development, and gradually exposed the low operating efficiency, overall strength is not strong and a series of weaknesses. Life insurance company in foreign inroads into the Chinese market, China's life ever fiercer competition studied under the life insurance industry to improve the efficiency of life insurance company's competitiveness and sustainable development of the entire insurance industry, is of great significance.Based on the evaluation of the efficiency of the insurance industry, the paper defines the efficiency and the content of the insurance, and studied the measurement. Through the analysis of characteristics of China's life insurance market, and selected indicators of the value added method of indicating select, the paper builds an input-output index system of efficiency. Meantime, using data envelopment analysis, and 2004-2008 data, respectively, estimates the life insurance companies in the technical efficiency, pure technical efficiency and scale efficiency, and the current efficiency of China's life insurance company, from both static and dynamic views. Then it analyzes factors of China's life insurance industry and proposes the efficiency of influence of life insurance industry, including firm size, own funds ratio,corporate governance, staff quality and nature of ownership, further uses panel data model to finish the significance test the endogenous factors.Finally, further more according to the results, the paper gives suggestion on improving the efficiency of China's life insurance industry from product innovation, scale efficiency, staff quality and uses of funds.The main innovations of this paper lie in the following two: First, the paper builds the insurance industry's input-output efficiency evaluation index system, and uses DEA model to measure the efficiency of static and dynamic calculations. Specifically speaking it uses data envelopment analysis in static analysis, and uses Malmquist index to test the dynamic analysis of total factor productivity change. The results lie in that the current overall technical efficiency of China's life insurance industry is low,which overall is improving; Comparative analysis states that government owned companies do better in both technology and scale efficiency. Input redundancy analysis showed that China's life insurance company have no obvious waste of resources.Second, in an empirical test of endogenous factors, the paper uses panel data model to test the efficiency of life insurance industry. The evidence shows that human capital factors on the efficiency of China's life insurance industry are not significant, indicating China's life insurance company not making full use of personnel to improve efficiency. In addition, company size and nature of ownership of the life insurance industry have positive effect on the efficiency, and the proportion of capital to the life insurance industry has significant negative effects.And corporate governance can significantly affect technical efficiency and pure technical efficiency, but the scale efficiency has no significant effect on the scale efficiency.