Efficiency Measurements And Influencing Factors Analysis Of Life Insurance Companies In China

The insurance industry in China has been developing rapidly since the insurance industry resumed in 1980.However,China's insurance industry has overemphasized market share and attached undue importance to the speed of development.It has neglected the efficiency for a long time,which resulting in an unfavorable momentum of low industry efficiency.Inefficiency has always been the root cause of the development of China's insurance industry.Efficiency issues are a deeper and more fundamental issue than speed and mad expansion.Efficiency has always been one of the core issues in the study of finance and economics,because efficiency is directly related to the degree of utilization of limited resources.From a long-term point of view,the sustainability of the health and sustainability of the insurance industry and even the financial industry depends critically on efficiency.Relatively speaking,the speed of development is a subsidiary issue.Based on this,this paper studies the life insurance industry efficiency which market shares occupies half of the country..This paper selects the data of 31 samples form life insurance companies in China from 2011 to 2016,adopts DEA model and Malmquist index model to estimate the technical efficiency,pure technical efficiency,scale efficiency and Malmquist index of 31 samples of life insurance companies,and decomposed the Malmquist index intotwo components:technical change and efficiency change,then combined with cases toillustrate the practical value of the research results.After that we select key factors that affect the life insurance industry in China and use the Tobit model for regression analysis.Finally,the results of the study are given,we put forward relevant policy recommendations to improve the efficiency of China's life insurance industry.