Research On The Effects Of Foreign Insurance Companies' Entry On The Efficiency Of Chinese Insurance Companies

With the deepening of the opening level of China's financial industry,foreign insurance has been fully developed in China's market.In April 2018,the central bank announced at the Boao Forum for Asia 11 further financial liberalisation measures that will land during the year,including four measures involving the insurance industry: the gradual liberalization of the foreign shareholding ratio of personal insurance companies,and the requirement to completely abolish the two-year representative office before the establishment of foreign insurance companies;Third,allow eligible overseas institutions to come to China to operate insurance agents and insurance valuation business;Four is to liberalize the business scope of foreign insurance brokerage companies,in line with domestic companies.Foreign insurance into China's insurance market,for Chinese insurance companies,brought advanced technology,management concepts and operating methods,the efficiency of Chinese insurance companies have a certain degree of competition and spillover effects,but also brought a lot of threats.Therefore,under the background of deepening the opening to the outside of the insurance industry,it is of great practical significance to study the impact of foreign insurance entry on the efficiency of Chinese insurance companies in China.Firstly,this paper analyzes the path of foreign insurance entering the efficiency of Chinese insurance companies by using the theory of economics.Secondly,it reviews the course of foreign insurance entering China's insurance market;Thirdly,the efficiency of 45 Chinese insurance companies in 2007-2016 years is calculated synthetically by using data envelope analysis method,and according to the type of life insurance,Whether it is a classification and analysis of the efficiency of Chinese insurance companies for the first four and other conditions;based on the efficiency value of the calculation,the Tobit regression model is used to analyze the competitive effect of foreign capital entry and the spillover effect brought about by the movement of people by industry and scale.Finally,based on the conclusion of theoretical analysis and empirical analysis,from two levels of management and policy supervision of Chinese insurance companies to make corresponding recommendations.In this paper,it is found that: on the whole,first of all,the increase of the number of foreign insurance companies has brought a positive impact on the efficiency of Chinese insurance companies,and secondly,the impact of the proportion of assets of foreign insurance companies on the efficiency of Chinese insurance companies is not obvious,However,the negative correlation between the proportion of foreign insurance market share and the efficiency shows that the entry of foreign capital has indeed produced a certain negative effect.Finally,the relationship between the mobility effect of foreign capital entry and the efficiency of Chinese insurance companies is not significant,and the spillover effect caused by fierce competition is not obvious.In addition,after the elimination of the top eight companies,the proportion of foreign insurance assets and the efficiency of Chinese insurance companies into a significant positive correlation,this change reflects a significant competitive effect,the life insurance company level,after the elimination of the top four of the company,the proportion of foreign insurance practitioners and the efficiency of Chinese insurance companies showed a significant positive correlation.It shows that the mobility effect of foreign life insurance entry brings more obvious promotion to the efficiency of small and medium-sized Chinese life insurance companies.The possible innovation of this paper is that,compared with the previous research,the type and scale of insurance companies are taken into account,and the influence of foreign insurance companies' entry on the efficiency of small and medium-sized life insurance and production insurance companies is studied more accurately by industry and scale.Limited by data availability,limited number of samples of insurance companies,and the selection of input-output variables there is no uniform standard,to be further improved in the subsequent study.