Evaluation Of Performance Of Life Insurance Companies In China Based On SBM

Life insurance is different from property insurance.It is insurance that takes the life and body of the insured as the object of insurance,and uses the life or death of the insured as the payment condition.Life insurance is one of major categories in insurance.Due to the long payment period and stable source of premium income,it not only provides protection for people's life and health,but also can play an essential role in investment and financing in economic development,which will have a huge impact on economic development in China.Since the 1980s,China has gradually resumed its domestic insurance business.The premium income of the insurance industry has experienced rapid development,from RMB 1.6 billion to RMB 3.8 trillion in 2019.However,China's insurance depth is only 4.16%,which is far below the level of insurance depth in developed countries.In terms of insurance density,it is also far behind developed countries.At the same time,the proportion of China's middle class is increasing.and the population aging is deepening.For China's insurance industry,there is still much room for development.On the other hand,during the early development stage of the insurance industry,a few domestic insurance companies were in monopoly positions.Due to the policy threshold,the domestic insurance industry has always adopted an extensive business model.In November 2015,China proposed to carry out supply-side reforms.In 2016,the China Insurance Regulatory Commission emphasized in the Outline of the 13th Five-Year Plan for the Development of China's Insurance Industry that it is necessary to improve the operating efficiency of the insurance industry.It is particularly important to analyze the factors that affect operating efficiency.The average operating efficiency of Chinese life insurance companies is higher than that of foreign life insurance companies from 2014 to 2018,but the technical efficiency gap of Chinese companies is large,reflecting the current market competition mechanism of the life insurance industry in China should be improved.After categorizing life insurance companies by premium income,the data shows that the pure technical efficiency of 5 of 7 large life insurance companies is DEA effective,and the average pure technology efficiency of large companies is much larger than that of small and medium companies.However,scale efficiency of large companies is the lowest,reflecting that large life insurance companies have greatly improved their technical management with their huge capital and resource advantages in recent years.However,due to the large scale.the scale efficiency has been relatively low.The medium-sized life insurance companies are relatively reasonable about scale efficiency and have the highest scale efficiency.For small life insurance companies,it is necessary to increase the company's operating scale as well as focusing on the improvement of management.Based on the results of the relaxation variables,we give suggestions on the future investment of life insurance companies.Based on the performance evaluation of life insurance companies,this paper uses a panel Tobit model to perform regression analysis on the factors that affect the efficiency of life insurance companies.It is concluded that too large or too small assets will have a negative impact on the operating efficiency of life insurance companies.The liability compensation rate and market concentration have a significant negative impact on the operating efficiency of life insurance companies.Finally,this article puts forward reasonable suggestions on how to improve the operating efficiency of life insurance companies based on influencing factors.