An Efficiency Analysis Of The CTALI Operation Of CPPIC

Compulsory Traffic Accident Liability Insurance (CTALI) is the first legally-bound compulsory insurance, domestically. The operation of CTALI is of great significance to property-liability insurers:CTALI is a business of property-liability insurers, and its operation will affect the profitability of insurers, greatly. The principle for the operation of CTALI is to achieve an equilibrium of "no loss, meanwhile no gain", which is extremely rare in practice. If the operation of CTALI was off track, it would bring quite a negative effect to the insurer. The thesis, beginnigng with a general analysis on the CTALI operation of China Pacific Property Insurance Co (CPPIC), Ltd, then, a thorough analysis on the efficiency of the operation, is of great importance to CPPIC, because it provides a comprehensive presentation of the issues that is enountered during the practice of CTALI, and a theoretical basis for the reform of the company.The thesis starts with the cluster analysis of each branch companies’premium income, through a geographical perspective; Then there comes an analysis of the correlation between the loss ratio and expense ratio, with the purpose of detecting whether the cost allocation process has been artificially interfered; Thirdly, an efficiency analysis through DEA approach is conducted, which contains the evaluation of the technical efficiency, pure technical efficiency and scale efficiency of every branch company, to discover the factors that affect the CTALI operation efficiency for every branch; At last, a dynamic analysis on the efficiency change, through Malmquist Index, is presented.