The Comparative Study On The Operating Efficiency Between Chinese And Foreign-Funded Personal Insurance Companies Based On The Perspective Of The Internet Insurance

Since the reform and opening up,China's insurance industry has developed rapidly.From the 460-million-yuan insurance premium income in 1980 when the domestic insurance business resumed,to 2017,the original insurance premium income has exceeded 3.66 trillion yuan.As one of the three pillar industries of the financial industry,the insurance industry plays an important role in economic compensation,financing,and social management.After joining the WTO,the pace of China's insurance industry's opening-up is increasing.The entry of foreign insurance companies has promoted market competition and brought in advanced technology and management experience.However,due to China's restrictions on foreign investment in the insurance market,foreign-funded insurance companies have faced problems such as small scale and narrow channels for a long time.After the year of 2013,Internet insurance quickly emerged.With the convenience of Internet insurance across time and space,many insurance companies,especially small and medium-sized insurance companies and foreign-funded insurance companies,have opened up Internet channels and look forward to being able to obtain a share of the booming Internet economy.As of 2016,117 insurance institutions have launched Internet insurance business.Among them,Internet insurance premiums for personal insurance reached RMB 179.7 billion,accounting for 76.55%of the total premium income of Internet insurance business.However,with the changes in the economic situation,opportunities and risks faced by China's insurance industry are in the same situation.On the one hand,in the era of Internet plus and Big-Data,China's insurance industry needs to use the power of science and technology to actively use Internet resources to conduct Internet insurance business through self-built websites or cooperation with third-party platforms,especially foreign-funded insurance companies.This provides a special opportunity for foreign-funded insurance companies to develop.Foreign-funded insurance companies can use their more advanced technologies and management experience to seek breakthroughs in the field of Internet insurance and solve the problem of having fewer outlets and narrow sales channels.On the other hand,the problem of traditional Chinese-funded insurance companies focusing on scale,grabbing share,and ignoring the improvement of operating efficiency is highlighted.The fierce insurance market and extensive managements have been unable to adapt to the requirements of the new era of Internet plus.In the background of Internet insurance,this study discusses the efficiency of personal insurance companies in China's insurance industry,discusses the differences in the efficiency of Chinese-and foreign-funded personal insurance companies.This study selects relevant data of China's Internet personal insurance from 2011 to 2016 and uses data envelope method for Chinese-funded personal insurance companies and foreign-insurance personal insurance companies respectively.This study selects human capital,paid-in capital,and total cost as input indicators,premium income,claims payments,and investment income as output indicators to measure their technical efficiency,scale efficiency,and pure technical efficiency.Compare the differences in the operating efficiency of Chinese-funded and foreign-funded personal insurance companies and analyze their causes.On this basis,the factors that affect the efficiency of the Internet personal insurance company are analyzed based on factors such as the Internet personal insurance premium income data and the Internet plus innovation indicators.We focus on the impact of the Internet plus innovation indicators and corporate forms on technical efficiency,scale efficiency,and pure technical efficiency.In the end,we sum up empirical research and theoretical research and try to provided feasibility suggestions for improving the operational efficiency of Chinese-funded and foreign-funded personal insurance companies in the background of Internet insurance.Through research,the main conclusions of this paper are as follows:From 2011 to 2016,the technical efficiency,pure technical efficiency,and scale efficiency of personal insurance companies in China all showed a trend of up first then down.The overall technical efficiency is fairly low and large-scale personal insurance companies are more efficient.As far as the capital structure is concerned,the advantages of Chinese-funded personal insurance companies lie in their economies of scale,and their disadvantage lies in purely technical efficiency.Foreign-funded personal insurance companies are relatively more efficient in pure technical efficiency,but the scale efficiency is significantly lower than that of Chinese-funded personal insurance companies.It is related to the relatively short time for the establishment and the strict foreign capital control on foreign-funded personal insurance companies in China.In the analysis of the influencing factors of the efficiency,it is found that the form of companies and the Internet Innovation Index are important influencing factors for the operating efficiency of personal insurance companies.The pure technical efficiency of foreign-funded personal insurance companies is significantly higher than that of Chinese-funded personal insurance companies,and the scale efficiency is significantly lower.The improvement of the Internet Innovation Index can significantly increase the pure technical efficiency.In the era of the Internet,the development strategies of foreign-funded personal insurance companies are different from Chinese-funded personal insurance companies.The Chinese-funded personal insurance company focuses on the development of technology while the foreign-funded personal insurance company uses the Internet insurance to actively expand the scale.