Research On The Performance Of China's Life Insurance Company

Efficiency is the core issue of the economics all along. It is also the important goal which is pursued by Life Insurance Company. The efficiency of Life Insurance Company is the key factor that determines whether it can have a sustainable development. And it also measures the competence and contribution to the society of the individual life insurance company. As the rapid development of Chinese Life Insurance Industry, Life Insurance Company will have more and more effect on China's economy. So under the environment of the fierce competition between native and foreign insurance company, it is very meaningful in the theory and practice to do some work on the efficiency of Chinese Life Insurance Industry and the factors that influencing it.After reviewing some interrelated researches on foreign and native paper about efficiency, this paper expatiate the basic meaning and the estimating approaches of the efficiency of life insurance company, analyse and compare these approaches. And after combined with the basic situation of China's life insurance company, Data Envelopment Analysis(DEA) approach is employed to estimate the technical efficiency, pure technical efficiency, scale efficiency and the redundance of the input of 31 life insurance companies.Then, this paper investigate the factors that influence the efficiency of life insurance company by regression. The dependent variable is technical efficiency estimated by DEA, and the independent variables are life insurance microscopic features. We get three conclusions from the regression. Firstly, the influence that the asset scale and whether the company is owned by state or not effect on efficiency is not significant. Secondly, the market shares, the proportion of salesman and the premium income per person have significantly positive correlation coefficient with efficiency. And thirdly, the growth rate of profit has significantly negative correlation coefficient with efficiency. Based on the above analysis, this paper propose some possible means to improve the efficiency of Chinese life insurance company. Such as increase the premium income and the market shares of insurance company, optimize the Market Structure of Life insurance industry via M&A, optimize the staff structure and improve educational level of staffs, and increase efficiency of insurance funds.