Analyzing The Risk And Earning Of Japanese Life Insurance Company Based On DEA

Since the reform and opening up, Chinese society has undergone tremendous progress, not only the Political system, each industry has continued to grow. Among them, one of the pillars of the financial industry is the insurance industry. It is growing at an alarming pace also the same with the banking industry and is an important part in supporting China's economic development and maintaining the social stability. However, with the rapid development in the insurance industry there will be problems inevitably in one way or another. Various insurance companies associated with the insurance industry itself and the various departments has emerged on the need or potential future problems and make timely adjustments in order to maintain their own operations to stabilize the insurance industry to move forward. Although, because of China's reform and opening increasingly in recent years, wide range of degree of openness is also growing. Foreign insurance companies as some international company found the value of China's vast market has joined into China's insurance market. In response to the strength of these has a strong international challenge of the old insurance company. Chinese insurance industry must also be based on the international trends, the insurance industry itself and the characteristics of the Chinese market in time to make improvements and adjustments to ensure that the increasingly fierce in the insurance industry competition at the position.In the insurance industry and all relevant departments make a variety of adjustments. China's insurance industry must learn to some other more developed countries. Japan has always been relatively large probability of occurrence of natural disasters, so its insurance is very popular, the insurance industry's system of rules and mode of operation, financial management is relatively more developed up to now. Because that we are the same Asia countries and we are geographically close neighbor, China and Japan has a great of similarities in the demographic and behavioral habits. And in recent years since the economic and cultural exchanges and cooperation have become more frequent, thus, Japan's insurance industry has become one of the appropriate goals which China's insurance industry can learn a lot of from.Evaluation of the insurance company solvency margin has been a subject of insurance companies and insurance regulatory authorities. Recently, with the proposal of the European solvency margin, solvency margin has become the focus of all attention. Influenced by the European insurance industry, the Japanese insurance industry and research also set off a wave of discussion. So, can solvency margin of a company fully explain the status of it? In this paper, we think about the above questions as a starting point, combined with the insurance company solvency margin indicator to analyze the profitability of the life insurance company in Japan to look forward to receiving the results of the above problems can be described. And we hope that this new analysis method can give the insurance companies and regulatory authorities a reference. And thus bring inspiration to the development of China's insurance industry.DEA (Data Envelopment Analysis), as a new kind of efficiency analysis, has been rapid development in recent years. This analysis method is characterized by its lack of a specific functional form, does not require the weight of each entry and not require the unit. Therefore, the data envelopment analysis is widely used. This article is based on the calculation of the solvency margin risk items which is as input, the solvency margin which is as output with regular income. Between input and output there is no specific functional form, each item is no fixed input and output weights so this paper take the data envelopment analysis of the above characteristics in line into account to study the data. So I decided to use it as a major analysis of this study. And, thanks to the latest version of the named "DEA-Solver" software with the help of the DEA analysis, the traditional BCC model and the new SBM model can be used to analyze the data separately.In order to get better results to illustrate the full question and also want to give insurance companies and regulatory authorities a clearly results, the paper numeri(?)l results obtained by the analysis is also given a life insurance company a plan to set targets. And the final chapter in the article summarizes some of the advantages shortcomings and other aspects of future research directions and using use of DEA model.