After China's Entry Into Wto, Allows Foreign Insurance Companies Operating Efficiency Comparison Research

At the beginning of entrying into the WTO, China has19foreign insurance companies.At theend of2010, the number of foreign insurance companies in China have added up to61. Obviously,after entrying into the WTO, a large number of foreign insurance companies went into China,inorder to seize the insurance market.How to enhance the manage efficiency become more and moreimportant. Expected to provide accurate imformation, the paper uses Data Envelopment Analysismethod to calculate the total technical efficiency, pure technical efficiency and scale efficiency.Input indicators are labor, capital, operating expenses. Premium income, total profits for theoutput indicators. Using C~2R and BC~2models to calculate the total technical efficiency, puretechnical efficiency and scale efficiency of15life insurance companies and13property insurancecompanies.Its conclusions are as follows:From the life insurance company, the total technical efficiency, the Chinese-funded insurancecompanies are superior to foreign insurance companies. In pure technical efficiency,Chinese-funded life insurance companies are better than foreign life insurance companies. In scaleefficiency, scale efficiency of foreign life insurance companies are in good condition.From the property insurance company, the total technical efficiency, Chinese-fundedinsurance companies are lower than foreign property insurance compamies, they have a waste of31.73%in resources. However, the average deviation of the value of total technical efficiency ofChinese-funded insurance companies generally showing a downward trend, Chinese-fundedinsurance companies operating conditions are gradually changed for the better. In pure technicalefficiency, the advantages of foreign insurance companies are easily to be seen, while the averagedeviation of the Chinese-funded insurance companies in the pure technical efficiency hasincreased year by year. In Scale efficiency, the Chinese-funded insurance companies have poorperformance. Scale efficiency status of the foreign insurance companies is still superior to theChinese-funded insurance companies, the scale efficiency of the Chinese-funded insurancecompanies get worse.In order to improve the operational efficiency of Chinese insurance companies, there arethree suggestions: First, increase innovation, improve the competitive advantage; Second, improvethe personnel training and development, improve service quality; At last, the development ofoverseas markets, the promotion of Chinese-funded insurance companies to "go out".