| The issue of efficiency is one of the core problems in the economic study.The efficiency of life insurance company is the quantitative measurement of the extent to which life insurance plays its role.With Chinese insurance market wholly opening to the outside world,the pressure that the Chinese life insurance is facing is becoming higher and higher.So now it is a serious problem about how to improve the efficiency of Chinese life insurance industry more quickly and better.Based on the current situation of Chinese life insurance,combining with the related researches both domestically and abroad,this paper introduces basic connotation and research approach of the insurance efficiency.With Stochastic Frontier Approach(SFA).this paper evaluates the cost efficiency and profit efficiency of Chinese life insurance companies and analyses its key determinants.The analysis is applied to an unbalanced panel of 17 life insurance companies over the period from 2000 to 2007.The results show that:Firstly,high profit efficiency does not bring high cost efficiency,and Chinese life insurance companies are still at the stage of extensive operation.Secondly,as Chinese insurance market wholly opens to the outside world,on the whole,all Chinese life insurance companies' cost efficacy declines slightly,while its profit efficiency is going up steadily.Thirdly,foreign life insurance companies' cost efficiency is higher than that of Chinese native life insurance companies,while its profit efficiency is lower than that of Chinese native life insurance companies.The differences between foreign life insurance companies and Chinese native life insurance companies for both cost efficiency and profit efficiency are gradually narrowed.At last.employees' education level and ratio of investment and interest income in total income have significantly positive influence on both cost efficiency and profit efficiency.Market share has negative influence on cost efficiency,but for profit efficiency,the influence is just the opposite. The innovations in this paper are listed as follows:Ⅰ.In the research method,it is a beneficial trial that this paper uses the SFA and Translog function to Measure efficiency,while most scholars uses the DEA to analyze efficiency.Ⅱ.In the research sample,this paper' panel data is from 17 Chinese life insurance companies between 2000-2007,which spans Chinese insurance market wholly opening to the outside world.So this paper can make comparison of the efficiency before and after Chinese insurance market opening-up.as well as make the results more accurate.Ⅲ.In the research aspect,this paper analyzes Chinese life insurance companies' efficiency from cost and profit aspect in order to avoid unilateralism. |
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