Empirical Research On The Impact Of Corporate Governance On The Efficiency Of Life Insurance Company

In the past 37 years,China's life insurance companies have achieved a huge leap from nothing to the world.From 2001 to 2017,the annual compound growth rate of China's life insurance companies was much higher than the world average,and it became the main source of growth for the world's life insurance business.In 2017,China's life insurance companies surpassed Japan for the first time,ranking second in the world.In these years,the China Banking and Insurance Regulatory Commission has put forward the requirement of “The Surname of Insurance is Insurance”,and the life insurance industry has accelerated its return to protect its source and its ability to serve economic and social development has been significantly enhanced.Although China's life insurance industry has made great achievements,it still relies on scaling up and adopting an extensive development model.In addition,the development trend of the mixed operation of the financial industry,the increasingly strict supervision of the industry and the deepening of the degree of opening to the outside world bring opportunities and challenges to life insurance companies.Huang Hong,vice chairman of the China Banking and Insurance Regulatory Commission,said: "With the continuous development of economy,the quality of life insurance development has a lot of room for improvement."The operational efficiency of life insurance companies is an important indicator for evaluating the quality and competitiveness of life insurance companies.In order to explore the development stage and operation status of China's life insurance companies,this paper uses the two-stage associated DEA model to measure and analyze the efficiency of China's life insurance companies from 2011 to 2017.The results show that with the introduction of various regulatory policies,the efficiency of China's life insurance companies has shown a relatively obvious upward trend in 2017.Strong supervision is conducive to ending the extensive development stage of life insurance companies,and transforming life insurance companies from high-speed development to high-quality development.However,the overall efficiency of China's life insurance companies is still low.The efficiency of premium acquisition is generally higher than that of profit distribution.The efficiency of Chinese life insurance companies is higher than that of foreign life insurance companies.The efficiency of comprehensive operated life insurance companies is higher than that of specialized life insurance companies.In the face of the current situation of the overall low level of operational efficiency of China's life insurance companies,only by improving the corporate governance mechanism and effectively solving the governance problems of opaque equity relations and non-compliance of shareholders' behaviors in some companies can we form effective self-discipline,establish a good market image,consolidate the foundation of sustainable development and improve operational efficiency.Strengthening the effectiveness of corporate governance will also help the regulatory authorities to rectify the current industry chaos from the source and promote the life insurance industry to a high-quality development path.Therefore,this paper explores the impact of life insurance corporate governance on operational efficiency from five dimensions: shareholder governance,board governance,supervisory board governance,executive governance,and management structure.The empirical results show that the proportion of independent directors and the separation of chairman and general manager are positively related to the efficiency of life insurance companies.The proportion of directors with master's and doctor's degrees and the number of financial licenses is negatively correlated with the overall efficiency.Finally,the paper gives the research conclusions and policy recommendations.