The Empirical Study Of Scale Efficiency Of The Insurance Industry In China

In a market economy, competition is everywhere, it is the source and power to promote the steady development of economic and social. Competitive process is also very important to insurance companies who cooperate with each other. Operational risk insurance is a special industry, the law of large numbers is of the core principles of the insurance business, bigger insurance, larger enterprises and service products bring more risk-resisting ability of the stronger.In order to improve the ability to resist risks and reduce unit product cost, governments tend to support the insurance market in an appropriate concentration and extensive business scope in order to achieve economies of scale. Economies of scale is the cornerstone to cultivate and enhance the competitiveness of China's insurance industry. At present, China's insurance market with the full liberalization of the insurance industry there is a need for systematic evaluation to measure the productivity of the industry. For regulators and policy-making body, the efficiency of insurance companies must be a key factor of concern to further encourage the development.Facing the increasingly fierce market competition environment and the larger insurance companies changing the business environment, to achieve economies of scale ,China's insurance companies should be maintained to the extent of economies of scale to adapt to the new requirements of the development of China's insurance companies.it is still to be done to maintain the status quo appropriate adjustments. appropriate adjustments to the specific number of economies of scale, economies of scale affect China's insurance companies are a major factor in the factors is how these factors affect the economies of scale of Chinese insurance companies, insurance companies in China should be the size of which increase the efficiency aspects , this series of the problem is the current stage of China's insurance companies are facing a new topic.This paper is based on the analysis of framework and structure of scale efficiency economic theory. The paper use the stochastic frontier analysis (SFA) and the data envelopment analysis (DEA) methods to calculate the scale efficiency of Chinese life insurance company and non-life insurance companies respectively. The the general basic conclusions showing these: the scale efficiency of insurance companies differing remarkable, the scale efficiency diminishing in general and high technical efficiency widespread.The paper investigates the efficiency of the insurance company in our country over the Period2004-2007.The sample consists of 45 insurance company data, including 26 life insurance companies, 19 non-life insurance companies. The first chapter, Introduction ,is to introduce the research background and significance of topics, and to carry out literature review of the scale efficiency of insurance companies at home and abroad, this article describes an approach to the study of the structure of the paper. The second chapter is on insurance companies definition, measurement methods and influencing factors of the scale efficiency; Chapter III uses the stochastic frontier parameter method SFA and the DEA methods to study the size of the efficiency of the non-parametric sample insurance company respectively, and to estimate the size of two methods to draw a comparative analysis of the efficiency of ranking; Finally, combine empirical results for China's insurance companies themselves and get the regulatory authorities to draw policy recommendations.