A Comparative Study On The Operating Efficiency Of Property Insurance Company In China Based On DEA Model

Chinese insurance industry has developed rapidly since its recovery and makes a great contribution to the modernization of our country.However,for a long time,most insurance companies have developed in a scaling-up and grabbing-share way,which seriously restricted the further development of our insurance industry.With the gradual opening of our insurance market after joining the WTO,foreign insurance companies began to enter Chinese market.Under the complicated and changeable economic situation and the increasing market competition pressure,the way to improve the integral competitiveness of our insurance industry is a significant topic that placed in front of numerous scholars and practitioners of insurance as well as the significance of studying and analyzing the operating efficiency of the property insurance market.Based on the previous studies and combined with the developing trend of the domestic insurance industry in recent years,this paper selects relevant data of the insurance industry from 2008 to 2012 and adopts DEA model and Malmquist index to calculate the technical efficiency,super-efficiency,scale efficiency,pure technical efficiency and TFP of Chinese insurance industry in recent years,and carries out a comparative analysis by dividing the insurance market into different market entity.It turns out that the overall operating efficiency of our insurance industry performed well and it has a downward trend,the operating efficiency of each insurance company has a great difference.By dividing the domestic insurance market into different market entity,generally speaking,the operating efficiency of Chinese native insurance companies is lower than foreign insurance companies,the operating efficiency of traditional insurance companies is more stable than the emerging insurance companies,the operating efficiency tends to decrease among the market leaders,market followers and market suppliers.Combined with the Malmquist index,during the sample period,the overall trend of the TFP is in a decreasing trend due to the decline of the insurance market technical efficiency.