An Empirical Analysis Of Cost Efficiency And Profit Efficiency On Health Insurance

Efficiency theory belongs to the category of economics and is one of the core propositions of economics.The most essential question of economics is to seek a scientific and rational allocation and utilization of resources,and efficiency is essentially to solve the problem of how to meet the needs of the limited resources to the maximum.Commercial health insurance in China's medical social security plays a very important role in the national economy also plays an irreplaceable role.The efficiency of commercial health insurance is the quantification of the degree of its function and the ability of sustainable development.China's commercial health insurance has achieved good results,but one-sided pursuit of only premium income and market share of the concept of development is still widespread,hindering the commercial health insurance functions and the role of further play.If you do not deal with the relationship between efficiency and risk,it will cause a single company's business health insurance business is difficult to develop,while the entire industry operating efficiency will be reduced,leading to waste of social resources.Therefore,China's commercial health insurance want to get a good scientific and sustainable development,we must have a correct understanding of its efficiency and evaluation.How to improve the efficiency of commercial health insurance is particularly important.In this paper,the stochastic frontier method is used to select the relevant data from2010 to 2015,and the cost efficiency and profit efficiency of the commercial insurance of21 insurance companies in China are analyzed.The structure is as follows: The research background and significance of the paper,the main search ideas and methods,and the literature review will be introduce in the first part.The second part expounds the development of commercial health insurance in China.The third part introduces the efficiency theory and efficiency measurement method,and focuses on the stochasticfrontier method and model adopted in this paper.The fourth part estimates the cost efficiency and profit efficiency of China's commercial health insurance,and compares and analyzes the measured results.The fifth part summarizes the results of the empirical study,and gives the recommendations.In the empirical results,it is found that the average cost level of commercial health insurance of each company shows a slight upward trend in the development of volatility.The level of cost efficiency of commercial health insurance is significantly higher than that of life insurance company,the cost efficiency of professional health insurance company tends to be intermediate,and the cost of operating health insurance is more stable.In the profit efficiency,the overall trend of decline.Among them,the life insurance company's commercial health insurance profit efficiency is lower than the property insurance company.The health benefits of professional health companies in operating health insurance business are not as good as life insurance companies and property insurance companies.