An Empirical Analysis On Cost Efficiency And Its Influencing Factors Of Life Insurance Company In China

As the industry under the condition of market economy, the existence of life insurance has important function, is the stabilizer of social economy and the booster. In recent years, China’s life insurance market resolve many difficulties, obtained the development which progresses by leaps and bounds, but in the context of its social role to play, and not all growth into effective output. The development of life insurance industry in our country encountered bottleneck, on the one hand, industry product competitiveness is not strong, homogeneity, safeguard function did not give full play to the problems such as, on the other hand, insurance enterprises ignore the service innovation and efficiency, not only can’t meet the needs of consumers diversity but also caused the waste of resources. Therefore, in the international continuously open economic environment, the efficiency of life insurance companies in China is a problem need to be solved. Efficiency is the category of western economics research, as well as the current life insurance market in China should attach importance to the core competitiveness. Combining with the domestic and foreign research results, using the SFA method to estimate and analyze the cost efficiency of the Chinese life insurance companies and its influencing factors. Choose from2007to2012as the time interval,24the typical personal insurance companies as the sample, reflects the company’s current cost efficiency level and influence of various factors on the cost efficiency and reveals the provided personal insurance cost efficiency difference and its deep reason, the research prospect is also given. The empirical results are as follows:(1)From the overall trend, our country life insurance company is steadily rising levels of cost efficiency, cost control mechanism has been continually improved.(2)The development of Chinese life insurance companies is slow in foreign life insurance companies. With the opening up of the domestic market, the strength of foreign companies in China got rapid development, and speed of more than the development of Chinese companies(3)The compensation spending, investment, business investment and capital investment price index and price cost efficiency has positive relationship, and factor prices relatively a bigger impact on the cost efficiency. GDP growth rate, risk management ability and level of education of employees such as index of the estimated coefficient is positive, but the coefficient values are small. Mainly in China life insurance company’s management is extensive, improving the efficiency of this period is difficult to use employees’education level and risk control ability to obtain the very good explanation. Because our country insurance amount occupies a small proportion of national economy, is far lower than the European and American mature insurance market development level, so the change of GDP to the rapid development of the insurance industry is no significant influence.