Research On The Operating Efficiency Of China's Life Insurance Companies

With the development of China's life insurance industry, China's life insurance companies which originally took the extensive mode of operation is no longer adapted to the current business environment of life insurance. How to raise the competitiveness and overall strength of China's life insurance companies in the new operating environment is directly related to the future sustainable development of China's life insurance industry. Operating efficiency is the concentrated expression of insurance companies'competitiveness and overall strength. It is of great significance to conduct a research on the operating efficiency of life insurance companies.Life insurance companies'operating efficiency is closely related with the external environment they are facing. And life insurance companies'market position is one of the major external environments that they are facing. For different market-positioned life insurance companies, their enterprise strategies will be different. Different enterprise strategies will influence the life insurance companies'inputs and outputs, which affect life insurance companies'operating efficiency. Therefore, the operating efficiency will be different among different market-positioned life insurance companies.From the perspective of market position, this article, which divides China's life insurance companies into a market leader, market challenger, market follower and Market Niche, uses DEA method to estimate the operating efficiency of different market-positioned life insurance companies from 2005 to 2008, and uses Malmquist index method based on DEA to assess the dynamic operating efficiency changes of different market-positioned life insurance companies. This article finds out: the factor that affects the operating efficiency of market leader and market challenger is technology change; the main factor that affects the operating efficiency of market follower is pure technical efficiency, followed by technology change and scale efficiency; the main factor that affects the operating efficiency of Market Niche is technology change, followed by pure technical efficiency and scale efficiency. In the end, this article puts forward suggestions of improving the operating efficiency of different market-positioned life insurance companies from the height of enterprise strategy. This will do a great help to improve the competitiveness and overall strength of China's life insurance companies, to motivate China's life insurance companies to grow and develop healthily. Also, this will give an important reference function for new life insurance companies entering China's life insurance market.There are two principal innovations in this article. The first is the innovation of research perspective and idea. This article conducts a research and comparative analysis of different market-positioned life insurance companies'operating efficiency from the perspective of market position. The second is the innovation of solving problems. This article puts forward suggestions of improving the operating efficiency of different market-positioned life insurance companies from the height of enterprise strategy.