Based On Analysis Of The Dea Method Of Efficiency Of Investment Of Insurance Funds

An insurance company refers to an economic organization whichoperates insurance business, which is an important chain in the nationalfinancial industry and is of great significance to macroeconomicoperation. It plays crucial roles in risk-sharing, financing and socialstability, etc. in the whole financial system. China has seen rapiddevelopment in insurance industry after its reform and opening. By theend of2010, China has owned8insurance group companies,126insurance companies and10insurance asset management companies,and the total of insurance company assets has reached a record$5.048161trillion.As the most fundamental as well as the most important business toinsurance company, underwriting is considered as the survival securityfor an insurance company. However, due to the current increasinglyfierce competition in insurance industry, insurance companies keeps onlowering insured charge and increasing marketing costs, in order toobtain more market share, which has led to great reduction of theunderwriting profit. In this case, the investment and the use of insurancefund has become an important path for insurance companies todevelop and expand. But at present in our country, the investment anduse efficiency of the insurance fund yet is low and the volatility is high,which sets apart the importance of research on how to effectively usethe insurance capital and to improve the efficiency of investment anduse of insurance funds. This is just the purpose which this research isbased on.First, this paper expounds the research background, significance,methods and ideas; second, the author makes a general retrospect ofthe related theories about funds utilization for the insurance company,mainly including research status quo of the investment and use of insurance fund domestic and overseas, insurance capital source,investment channels and current investment situation of insurancefunds in our country; third is an introduction of the DEA; Next, empiricalstudies are conducted on the use efficiency of the funds of25China’stypical insurance companies during the period of2007-2010and thecalculated results are also described and analyzed Finally, based onthe analysis, the author puts forward some beneficial suggestions onhow to further improve the efficiency of capital utilization for insurancecompanies, hoping to shed some lights on enhancing the investmentand use efficiency of insurance funds of our country.