China’s Insurance Industry Efficiency Research

Since the reform and opening up, China’s rapid development of the insurance industry of our country economic growth made an important contribution in economic rapid development, a stable economy, indicating inflation role, and in the economic in low water, a stable economy, reduce the role of economic shocks. Although China’s insurance industry development up to now have the very big achievement, but is still faced with production efficiency is low, the lack of competition situation. And the China insurance regulatory commission commitment from since December2006, a foreign insurance company may enjoy the same national treatment. By the end of2008foreign-funded insurance salary of the entry of insurance company is half the total, since China’s accession to the WTO, insurance of the challenges facing imminent, foreign insurance in many aspects of domestic insurance for all to be a threat. Therefore, to our country insurance industry efficiency evaluation, studies our country insurance industry efficiency low main reason, and foreign insurance efficiency in production are car don’t, enhances our country insurance industry efficiency way, have very important theoretical meaning and realistic meaning.To study of the efficiency of the insurance industry, the domestic and foreign literature typically use the data envelope analysis (DEA model), and the use of DEA model cannot eliminate the exterior environment and random error to the whole measure of the influence that can’t get more accurate measurement results, therefore, this article choose three stage DEA model to our country insurance industry efficiency measure, to a certain extent, to overcome the external environment and random error on the effects of calculation results. This paper select property insurance company and home, including foreign-funded insurance companies and Chinese insurance enterprise, as the research object, the use of three phase DEA method for2008a2011China property insurance industry efficiency evaluation, and sums up the our country insurance industry efficiency existing problems, and put forward the corresponding solution.First of all, in the third chapter is given when several insurance industry efficiency calculation method and formula, including parameter method of SFA model and arithmetic formula, nonparametric method of the application of DEA model method and calculation formula, and the advantages and disadvantages of each method to do a detailed instruction, and ultimately choose three stage DEA model to our country property insurance industry efficiency made estimates. The original input and output of a substitution DEA model, won the first stage property insurance industry efficiency, property insurance pure efficiency, scale efficiency measure value, through analysis and comparison, it is concluded that the size of the inefficiency is our country property insurance industry the main reason for the technical efficiency; In the first stage of the calculation results also show that, whether technical efficiency, pure technical efficiency and scale efficiency, foreign insurance companies are lower than the Chinese insurance company, but this result does not necessarily accurate, because the first stage of the DEA models do not eliminate the external environment factors and random error term on efficiency is worth influence, therefore, at this stage the result of value was not accurate in reflecting China property insurance company’s real efficiency.Secondly, the use of SFA model in DEA model analysis the second stage, with SFA model will affect property insurance company’s external environment factors and random error term isolated, meaning to reduce them to the influence of input variables, but, due to the influence of external environment DEA model uncertainty, so to influence the input variable separation degree are not sure, can probably will influence factors isolated, get a input and output items adjustment value.Finally, the input and output of an adjustment value to substitution DEA model is given, and the efficiency value is the elimination of external environment variables and random error term property insurance industry efficiency value. Calculation results show that:the property insurance industry technical efficiency than the first phase of the calculated result to low, pure technical efficiency value though and the first stage compared with improved, but the overall level and foreign property insurance or a gap compared, this shows that property insurance in our country in the future developing possible because pure technical efficiency low causes in the insurance market, the lack of competitiveness. Scale efficiency and the first stage compared with the decline range is very large, leading to the technical efficiency is low. even no efficiency in, more those who be worth to rejoice is foreign property insurance industry efficiency ratio of the size of the Chinese property insurance is much lower, description of1:30foreign property insurance in China insurance market competition is not very strong, but still cannot underestimate the foreign capital enterprise development potential.In the property insurance industry efficiency on the basis of analysis, summarizes the whole of China insurance industry efficiency level, think, our country insurance for technical level is low in the whole insurance industry efficiency level is low, in the insurance business scale expansion remains to be.