Based On The Dea Model Allows Foreign Property Insurance Company In Our Country Empirical Study Efficiency

Since the recovery of China’s insurance business in1980, after30years of reform and development, the domestic property insurance industry is growing and has made remarkable achievements. The escort role of property insurance for businesses and families and the whole socio-economic has become increasingly prominent. But with the acceleration of the process of world economic integration and China’s implementation of WTO agreements, the property insurance industry market participants increase rapidly and the competition is increasingly fierce so that their operating environment is undergoing profound changes.Compared with the globalization property insurance industry, China’s property insurance industry is still immature confronted with many problems and contradictions, and these problems in the final analysis is that low levels of efficiency of the property insurance industry. Efficiency is a concentrated reflection of the competition ability of insurance companies and maintaining the high efficiency of the property insurance industry is fundamental to prevent risks and to maintain sustainable development. The key aspect of transition to intensive development is that focuses on and optimizes efficiency to enhance the overall efficiency of property insurance industry. Therefore, in response to the tremendous pressures and challenges from the full liberalization of the Chinese insurance market and the influx of foreign insurance companies to China’s insurance industry, we must enhance the competitiveness of the property insurance industry, evaluate the efficiency level of the property insurance industry, study the efficiency influence factors of the property insurance industry, and seek paths to enhance the efficiency of the property insurance industry. It has scientific guiding significance for China’s property insurance industry to safeguard self-interest under open conditions and change growth mode from extensive to intensive.Firstly, This paper starts from the theory of efficiency at all stages of development and clear the efficiency content in modern economics stage, and then the current efficiency measurement methods are elaborated and the method of data envelopment analysis (DEA) which the article will use is carried out a detailed theoretical description. Secondly, it measures and evaluates technical efficiency, pure technical efficiency and scale efficiency levels of the sample property insurance companies choosing the DEA methods. The selection of the sample units follows the data requirements of the DEA method and the selection of input and output indicators follows the model and the computational requirements. According to the operating characteristics of the insurance companies the paper analyses the efficiency level of the sample property insurance companies using two-stage DEA method and then it founds that the overall efficiency of domestic-owned property insurance companies is better than the domestic foreign companies in the underwriting phase (Phase I) and investment stage (Phase II), but the efficiency level of each company is different. Now the sample insurance companies make much higher marketing capability in terms of premium income than investment profit earning capacity, and a few number of long-term property insurance companies are in the production frontier. Domestic foreign property insurance companies are growing accumulation and continue to narrow the gap with the domestic-funded companies in the scale and management technology.The breakthrough of domestic foreign property insurance companies enhancing the efficiency lies in increasing investment to expand market share, while Chinese-owned companies must pay attention to the technical level to make core competition ability in order to maintain a competitive advantage, change the extensive management mode, and attach importance to the enhancement of the efficiency of capital allocation. Only if the two phase balance development of scale and technical aspects of effective cooperation, the overall efficiency of the property insurance industry can comprehensively improve. Thirdly, the paper mainly focuses on the microcosmic factors impacting on the efficiency of the property insurance industry and carries out a linear analysis with the method of stepwise regression while the macroeconomic impact of factors are summarized in the paper. The results show that the company scales and the quality of company employees are the most important endogenous factors affecting the overall efficiency of the property insurance companies but expenses and market share are not obviously impacting on the efficiency. In addition, the level of national income, the degree of capital market development, the level of inflation and the market structure, economic policies, changes in regulatory policies all will have an impact to the efficiency of the property insurance companies. Finally, for the problem of low efficiency of property insurance industry, it put forward suggestions and ways to improve the efficiency of the property insurance industry in our country. To maintain an appropriate size of the insurance industry and optimize the insurance industry market; to focus on risk control and management of the property insurance industry and improve product development and innovation; to strengthen the insurance industry investment management and improve capital utilization level; to build a rational and effective human capital allocation and investment mechanisms. To promote company famous degree and enhance the business market share; to follow the regulation mechanism and the insurance market and innovate continuously to develop.