Analysis On Influencing Factors Of Efficiency In Chinese Insurance Company

The insurance industry is one of the pillars of the financial industry in our country.It plays a significant role in the social financing,social security,social management and promoting the sustainable development of social harmony and stability.And the insurance company governance is an important part of the national governance system,as well as the micro system foundation for the rapid development of China's insurance industry,the core of the reform and development of insurance system of our country.And it is also an indispensable content of China's Insurance regulation.This study starts from the insurance company efficiency,and build a chain of “the efficacy of insurance company,the index of insurance companies' corporate governance,and the specific elements of insurance corporate governance ",to research on the effectiveness of China's Insurance Company governance.In this paper,from the perspective of corporate governance,we study of the efficiency of 81 insurance companies in China,and its influencing factors,by empirical analysis.Based on the two stage production system DEA data envelopment analysis,according to the resource constrained production stage,we choose the input oriented,scale reward invariant CRS model to evaluate the comprehensive efficiency of those sample firms.The study found the deep gap between the level of single efficiency in every sample firm,and the low efficiency of the whole industry.And we also found that the efficiency of insurance companies with limited liability is slightly higher than the average level of joint-stock insurance companies;the efficiency of Chinese insurance companies' average level is slightly higher than the foreign insurance company;the efficiency of life insurance companies is slightly higher than the average level of property insurance companies.then,this study uses multiple regression analysis method to test the relationship between the efficiency and the insurance companies' governance index,different levels of corporate governance of insurance companies and different contents of the insurance company efficiency,as well as specific elements of the insurance company governance specific elements on the efficiency of insurance companies.The results show that there is no significant effect on the efficiency of insurance companies,such as the corporate governance index,and other sub-indexes.Besides,the specific elements,such as a major shareholder,proportion of shareholders meeting times,the proportion of independent directors,the size of the board of supervisors,board of supervisors held a number of meetings and other indicators and efficiency correlated,show that the insurance company specific elements could improve the company governance efficiency to a certain extent.According to the theoretical studies,the effectiveness of China's insurance companies has yet to be improved.The insignificant relationship between the efficiency of insurance company and its corporate governance turns out that Chinese insurance company's management ability failed to promote the production.It also reminds those insurance companies and insurance regulatory authorities should not only focus on compliance of corporate governance,but also the effectiveness of insurance company governance.For insurance companies,the fundamental goal of governance is not to meet the requirements of regulatory authorities,but to lay the foundation for long-term business continuity,and gain the competitive position in market competition.And for regulators,the supervision of insurance companies is not only to urge them to form a governance shell in the form,and importance is to supervise the insurance company's corporate governance playing its due role.Therefore,to realize the process of "Appearance" to "Connotation",which is to improve the effectiveness of insurance company governance is the future destination of China's Insurance companies.