The Impact Of The Openness Of The Insurance Industry On The Efficiency Of Insurance Companies

On December 11,2001,China officially became a member of the WTO organization.As the vanguard of opening up to the outside world after the accession to the WTO,the insurance industry released a series of access restrictions and accelerated the opening up.After years of reform and development,China's insurance industry has become the world's second largest insurance market.In recent years,China's economy has transformed into a new normal of medium and high-speed development.It has put forward new requirements for the insurance industry to continuously change its business philosophy and deepen market reforms.The insurance industry will continue to expand its opening to the outside world.In 2018,the insurance industry opened up faster,and the foreign share ratio of foreign-invested personal insurance companies was promulgated to 51%.After three years,the relevant policies were no longer set,and the insurance industry was further opened to the outside world.This will bring the opening up of China's insurance industry to a new level.Under the background of the opening up of the insurance industry,the impact of the degree of openness on the efficiency of China's insurance companies will be discussed and analyzed.Based on the above ideas,this paper sorts out the literature on the openness of the insurance industry,the efficiency of insurance companies and the relationship between the two,and finds the feasibility and innovation of the study on the impact of the openness of the insurance industry and the efficiency of insurance companies.Utilize and improve the frequency measurement model of banking and insurance industry services proposed by Mattoo(1998),and measure the degree of openness of the insurance industry from the aspects of “nominal openness” and “actual openness”;construct an efficiency index system for insurance companies The efficiency of the sample insurance company is measured by the ultra-efficient DEA model.On the basis of the quantitative measurement of the former two,qualitative analysis of the theoretical mechanism of the impact of the openness of the insurance industry on the efficiency of insurance companies from the perspective of economics,followed by the selection of relevant explanatory variables using the measurement method to establish an empirical model,the 2000-2017 sample The insurance company's unbalanced panel data is brought into the model for empirical analysis,trying to find out the logical connection between the two.The conclusion shows that the “nominal openness” of China's insurance industry has been steadily increasing year by year,while the “actual openness” has shown a downward trend.The total openness of the insurance industry has been expanding.The efficiency value of insurance companies in China is relatively high,and the efficiency of property insurance companies is higher than that of life insurance companies.The degree of openness of the insurance industry has different effects on the efficiency of Chinese-funded and foreign-invested insurance companies.The “nominal openness” and “actual openness” also have different effects on the efficiency of insurance companies.According to the empirical results,under the background of the opening up of the insurance industry today,this paper proposes three suggestions for the regulator to formulate an open strategy: grasp the risk and open relationship,and steadily increase the opening up of the insurance industry;promote the system construction to expand the nominal openness of the insurance industry;The industry is open to the outside world and promotes reform and innovation through openness.And four insurance companies should respond to the opening up speed and improve efficiency: Chinese property and casualty insurance companies focus on optimizing business and product structure,and fostering their own innovation and competitiveness;Chinese life insurance companies increase investment in innovation,combine value with risk prevention,and improve efficiency Large-scale Chinese-funded insurance companies actively explore the “going out” strategy and strive to develop in an all-round way;foreign(integrated)insurance companies maintain their advantages,promote localization,and increase market penetration.