Research On X Efficiency Of Small And Medium - Sized Life Insurance Companies In China

As an important subject of life insurance market, the good development of small and medium life insurance companies is one of the standards to measure whether the life insurance market is healthy or not. In the context of the market environment,which is compressed by large life insurance companies, small and medium-sized life insurance companies to seek a place, not the blind pursuit of market size, but to enhance their operational efficiency, enhance their overall competitiveness.We set the data of 35 small and medium-sized life insurance companies in China in 2010- 2014 as the sample, and combine the research situation at home and abroad with the actual situation of China’s small and medium life insurance companies,analysis the profit efficiency and cost efficiency of the companies in the sample, and also the influence factor with stochastic frontier analysis(SFA) method. Meanwhile,we compared the X efficiency between the large life insurance companies and small and medium-sized life insurance companies, between small and medium-sized Chinese funded life insurance companies and(co-) the capital of the small medium size life insurance company, between the small medium size life insurance companies in the banking system and non bank small and medium-sized life insurance company.And the main conclusion as follow:1.On the whole, the profit efficiency and the cost efficiency for the small medium size life insurance companies in China tends to be stable, and there is no obvious fluctuations, indicating that in the transformation of the whole insurance market of our country, the small and medium-sized life insurance companies of our country is changing business strategy, from the previous extensive development to steady business promotion transformation of management efficiency.2.Compared with large life insurance companies, the profit efficiency and cost efficiency of China’s small and medium life insurance companies are at a disadvantage. Strong capital scale, wide coverage range and profound influence on the brand and mature talent incentive system, large life insurance companies rely on3.its many years of accumulation of these advantages to form firmly occupy China’s life insurance market, regardless of profitability and cost control ability are better than small and medium-sized life insurance companies.4.The entry of foreign capital has a negative effect on the profit and cost efficiency of small and medium sized life insurance companies in China. Chinese companies can quickly have a foothold in China’s life insurance market with local advantages and China’s policy support, and in consideration of protection of the insurance market of our country, the policy of our country, China’s policy of foreign investment companies have more restrictions, foreign investment can not play the maximum effectiveness.4.The entry of bank capital can significantly improve the operating efficiency of China’s small and medium life insurance companies. In terms of profit efficiency, the banking system is overall lower than the non bank small and medium-sized life insurance companies, and show a greater volatility; in terms of cost efficiency, the banking system is superior to the non banking company.