Owned Property Insurance Enterprise Economic Efficiency Empirical Analysis

This paper aims to analyze the economy-efficiency (which covers technical-efficiency, allocative-efficiency, pure-technical-efficiency, scale-efficiency and cost-efficiency) of property insurance company in China, on the basis of its concept of how to optimize the output with input, through several empirical methods. And goes further for finding out the influence and means to improve the economy-efficiency, so as to upgrade the competition and integrate the sources.The 1st chapter of this paper defines the background, purpose, practicability, research scale, methods, and findings of in & out bound and frame of the paper.In the 2nd chapter, for the purpose of having a general idea of China's property insurance, a brief current-status introduction is made. The author believes that though China's property insurance is on its way of rapid growth, oligopoly has showed itself in this immature market, in addition, the low share in the global market, big gap with overseas profession and oneness of ownership will be not good for the industry to develop healthy.In the 3rd chapter, empirical methods are implied to the economy-efficiency analyses. Firstly, DEA is used to analyze the TE, PTE and SE of China's property insurance company, then SFA for TE and AE, on the basis of above, it is found out that the technical efficiency of insurance is on the trend of improvement, but no rules can be found among the different-scale and newly & old companies; besides, over-input on labor is the common reason responsible for the low production capability; the lack of concept of effective-scale is the common defect as well.In the chapter of 4, Tobit Model is used, on the basis of the results in the last chapter, to find out the reasons which influence the development of China's insurance company. Then it turns out to be the Labor, but the data also indicate that the positive impact is very weak.Finally, several suggestion about how to improve economy-efficiency are proposed in the last chapter, including cutting the amount of employee, updating their professional skill; having the fix-asset in control, stopping blind investment; being focus on the effect of capital using; and attention to be paid on the concept of economy-efficiency.