China Life Insurance Industry Efficiency And Influencing Factors Of Research

Life insurance industry in China is a product under the market economy conditions, and it is also an important part of the economic operation, whose existence with a stable socio-economic development and with the significance of capital intermediation. Since the reform and opening up, China’s life insurance industry developed rapidly. However, it has exposed the sense of inefficiency and irrational allocation of resources, which will affect China’s Life insurance industry sustained and healthy development.This paper starts from the perspective of China’s life insurance industry to achieve social role, summarizes the relevant research results on the basis of a more comprehensive analysis of the development status of China’s life insurance industry, and further use of input-oriented data envelopment analysis model and Malmquist index model calculating the efficiency of China’s life insurance industry. The study found that the average cost efficiency of China’s life insurance industry in2001-2010shows the downward trend. When study the changes in total factor productivity of China’s life insurance industry, we found that the growth of total factor productivity growth was mainly due to the "catch-up effect". Further analyze the factors which affect the efficiency of China’s life insurance industry, we found that Chinese capital company, scale of the company, labor productivity and opening time will be significant impact which affect the efficiency of China’s life insurance industry. This paper suggests that to strengthen the Enterprise Risk Management, optimize the structure of corporate governance, reasonable adjust the business structure, appropriate to introduce a competition mechanism, optimize the structure of the market players and improve the scientific validity of the regulation will increase the level of efficiency of the life insurance industry in China.In the course of the study on the efficiency of China’s life insurance industry, this paper always stands in the social role point of view, re-select the input and output indicators, and the conclusions have some differences with other related researches. Anyway, it is a positive exploration on the efficiency of China’s life insurance industry.